Also in this playlist...
This transcript is automatically generated
Investors at or nearing retirement -- -- their portfolios to the sacred things like fixed income assets.
But with the runup in prices our next guest says those traditional bond investments are actually no longer the way to go out.
So here with his real alternatives Jordan Waxman high towers each SW advisors managing director and partner.
-- I'm glad to here because there -- a lot of people in the situation just sitting.
They've been burned so many times I mean you're talking of some like my mom.
She didn't -- every bubble in police in gas line you can get -- name can -- gonna convince her to go on to anything other than bonds.
You know thanks for having me first of all.
The same people who are worried about going into other things -- bonds are also sitting on cash yielding nothing so.
It's since 2008 you've had a huge run in bonds everything has returned double digits when.
Naturally bonds are yielding somewhere between three and 8% depending on how much risk you take and -- had double digit return since since the credit crisis.
Now all of the spreads have collapsed and it's riskier to be in long dated bonds than in some other asset classes that you wouldn't think of to learning com.
Let's get right to your picks -- warning your picks are high yield warning time.
Right is interesting and is -- play basically on the fact that the rating agencies are behind it all they might not be as high -- that they should be well the good managers and high yield municipal bonds have portfolios where.
Sometimes half of the securities -- -- -- by the agency's small municipalities.
That need to come to market can't afford to pay the rating agencies.
But they have to issue municipal bonds there.
Good a municipal bond managers high yield -- managers -- very specialized field.
Have credit research analysts that -- through the balance sheets and income statements of -- municipalities.
And they apply the ratings that they think they they ought to achieve.
And these are yielding on average about 6% federally tax for -- -- -- get these parents they're hard to come by aren't that they are we advise clients.
-- talent scouts basically investment consultants on behalf of our clients so we picked money managers who have.
Longstanding track records who are who have excellent.
Not only returns but they're they are process these are our terrific and there.
Researchers hastily find many managers specialize you do you know on average these portfolios have 12100 securities in them so the average investor can't build a portfolio of ideal -- -- -- dividend paying stocks we've been talking about this for along time now with so many of them are -- I hit that 52 week highs are you still getting in them.
Well -- hitting a 52 week highs but think about in a slow growth environment.
People still have to put -- congress in my -- these are your kids got -- this year.
They needed some medicine the stuff to brush the teeth wash their hair.
And look at the results of consumer products companies they've been terrific wide.
Entering new markets -- into pristine but they also have cash that they can use to buy back -- securities.
Pay higher dividends to have the flexibility so.
Those are stocks that are trading at twelve and a half to thirteen times earnings.
In Europe they're gonna have to twelve times earnings paying very high dividends we feel that there's going to be multiples.
Your other suggest is -- limited partnerships unfortunately have to write a lot to have you back to talk about those packed with high -- HS that -- advisors -- --
Filter by section