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Pros: Retail Investors Should Get Exposure to Corporate Bonds

Tuesday, 15 Nov 2011 | 1:08 PM ET

Sick and tired of getting whipsawed by the wild swings in the market? The Fast pros feel your pain and they have a plan.

It may be time to look at bonds.

Not Treasurys, though. Instead the Fast pros and CNBC contributorRon Insana say, “Look at munis, TIPs or high grade corporate bonds.”

But high grade corporate bonds are only for pros, right? Not anymore.

Ron Insana's Asset Allocation Strategies
CNBC's Ron Insana explains how you can balance your bond portfolio. He likes U.S. large cap industrials, U.S. financials, and U.S. small and mid-cap stocks.

"One way retail investors can play corporate bonds is long the LQD," explains trader Brian Kelly.

That's an ETF that's made up of a basket of bonds issued by our nation's largest companies including AT&T, Wells Fargo, Wal-Mart and more.

"Corporate bonds are a great place to be," Kelly adds. "Corporations have a ton of cash."

And, if you’re willing to embrace at least a little risk, Insana suggests the following theme: Focus on the improving economic activity here at home – and look at companies that benefit."

Trader Patty Edwards likes the theme. She suggests playing it with big cap tech. “Typically tech does well when the US economy is doing well,” she says.


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Trader disclosure: On Nov 15, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long call spreads AAPL; Najarian is long call spreads JPM; Najarian is long call spreads MS; Najarian is long call spreads INTC; Najarian is short LNKD; Cortes is long XLE; Cortes is long US treasuries; Cortes is short AAPL; Cortes is short EURO; Cortes is short DB; Cortes is short STD; Cortes is short BAC; Cortes is short XRT; Edwards is long XLK

For Brian Kelly
Shelter Harbor is long GLNG
Shelter Harbor is long LNG
Shelter Harbor is long EWZ
Shelter Harbor is long CAF
Shelter Harbor is long GLD
Shelter Harbor is long RSX
Shelter Harbor is short EWO

For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long GLD
Trutina Financial is long INTC
Trutina Financial is long VLO
Trutina Financial is long TGT

For Willie Williams
No disclosures

For Toni Sacconaghi
Toni Sacconaghi maintains a long position in Seagate Technology (STX).
All statements in this report attributable to Gartner represent Bernstein's interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this report). The opinions expressed in Gartner publications are not representations of
fact, and are subject to change without notice.
Mit Shah maintains a long position in Apple Inc. (AAPL).
Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of the following companies DELL / Dell Inc.
Bernstein currently makes a market in the following companies DELL / Dell Inc.
The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking securities
related services and received compensation for such services DELL / Dell Inc.
An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies DELL / Dell Inc.

For Charles Grom
Wal-Mart (WMT) is an investment banking client of DBSI.
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from (WMT) this company within the past year.
(WMT) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.

For Ron Insana
No disclosures

For Stephen Schork
Schork has a position in crude oil

For Doug Freedman
RBC Capital Markets, LLC makes a market in the securities of Intel Corporation and may act as principal with regard to sales or
purchases of this security.
A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than
investment banking services from Intel Corporation during the past 12 months. During this time, a member company of RBC Capital
Markets or one of its affiliates provided non-investment banking securities-related services to Intel Corporation.
A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than
investment banking services from Intel Corporation during the past 12 months. During this time, a member company of RBC Capital
Markets or one of its affiliates provided non-securities services to Intel Corporation.
RBC Capital Markets has provided Intel Corporation with non-investment banking securities-related services in the past 12 months.
RBC Capital Markets has provided Intel Corporation with non-securities services in the past 12 months.
The author is employed by RBC Capital Markets, LLC, a securities broker-dealer with principal offices located in New York, USA.


CNBC.com with wires.

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