As major central banks continue to raise interest rates in 2022 and the first half of 2023, deposit interest rates in many mature markets have become more attractive. Hawkish moves by major mature market central banks also pushed bond yields higher. While short-term investments such as term deposits and short-term funds do have their benefits in a portfolio, global investment grade corporate bonds may be preferable for the following reasons: Long-term growth potential: Yields are currently at ten-year highs, and policy rates in mature markets have reached or are close to peaking, opening up good entry opportunities for investing in global investment-grade corporate bonds. If the global economy remains solid, global investment-grade corporate bonds may generate higher income than U.S. dollar time deposits. Even if policy rates fall, investors may still benefit from price appreciation in addition to coupons, as yields fall as policy rates fall, potentially offsetting ...
Biggest joke in fund investment: Who doesn’t understand the other’s heart, between fund managers and investors?
The biggest joke in fund investment: Who doesn’t understand the other’s heart, between fund managers and investors? The popularity of fund investment once made people believe that investing in funds can really make money, but what is the reality? Investors are not just disappointed, but fund managers are relieved. The joke about funds is: Fund managers and fund investors are on the same line of interests, a relationship where both prosper and lose. What is the result? Fund investment losses have been more than 30% or even more than 90%, and fund companies and fund managers have not forgotten to charge management fees. The bigger joke is that the fund manager lost tens of billions, collected billions in management fees, and then resigned and ran away. Faced with losses in fund investments, fund managers, with huge management fees and annual salaries of hundreds of millions, waved away the cloud of losses, leaving only fund investors learning to swim in the water. Fund inve...