Current Charts and New Charts

Current Charts and New Charts - Mar/Apr 09 UK

Matthew McCall reviews the charts.

Now that the worst year in decades for US stocks is behind us, it is time to look at the United States and abroad for the best places to make money in 2009. I have named 2009, ‘The Year of Opportunity’ for investors who are willing to think outside the box and who have a time horizon of at least two years. A wide range of asset classes offers the best reward-to-risk opportunities and there should be something to grab everyone’s interest.

Fixed income: from junk to quality
With many international stock indices down over 40 per cent in 2008, one would think the best opportunity for the upcoming year would be stocks. This may be true. However, when decisions are based on reward versus risk I tend to favour an asset class often overlooked by investors – fixed income. The reason I believe fixed income, and in particular corporate bonds, offers opportunity in 2009 has to do with two factors – yield and capital appreciation. Yields on investment grade corporate bonds average over five per cent and many bonds are trading at approximately 75 cents in the dollar. This allows for a high annual yield and the possibility of substantial capital appreciation...

Matthew McCall is the founder and president of Penn Financial Group, LLC. He has been involved in the investment professionally since 2000, when he began his career with Charles Schwab Inc. His educational background includes an undergraduate degree in finance and an MBA from the University of Colorado. www.pennfinancialgroup.com Contact Matt at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

This article was originally published in the Mar/Apr 09 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd. If you are not a subscriber, click here to subscribe, or to purchase this issue as a single back issue, click here.

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