Even with Tuesday’s rally, are corporate bonds a better bet?
With the Dow surging higher on Tuesday and big names calling the bottom, jittery investors aren’t sure where to go or what to do. However, if you watch Fast Money regularly, you might remember Karen Finerman has said a smart way to get in the game is with corporate bonds. In fact on February 19th she said, there were great opportunities in fixed income. (Click here to read that post)
And she wasn’t alone in saying that.
“Earlier in the year SmartMoney reported, “Many professional money managers recommend that nervous investors ease their way back into the markets through investment grade corporate bonds."
So, what’s the trade?
Bonds are very attractive and there’s still great stuff out there, says Karen Finerman. Look at the TXU Energy bonds, she counsels. That one looks great.
Or you can look at the EFR, adds Tim Seymour. I think it’s in very good shape even in the worst of cases.
There are also ETFs that provide exposure to bonds. iShares iBoxx $ High Yid Corp Bond and iShares IBoxx $ Invst Grade Bd Fd
are just two, reminds Dylan Ratigan.
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Trader disclosure: On Mar. 10th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Is Short (BBT); Finerman's Firm Own (RIG); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO); Syemour Owns (AA), (BIDU), (EEM), (FXI), (TTM), (BAC), (TCK), (RSX); Karabell Owns (AAPL), (BHP), (FCX), (FXI), (GOOG), (GLD), (GE), (JPM)