Do You Think You've Missed The Boat With Bonds?

Bonds are supposed to be the "boring" asset class--good for a regular coupon payment and a fairly stable value of principal--but the past six months in the bond market have been anything but boring!

The "safest" bonds in the world--U.S. Treasury debt--actually produced NEGATIVE RETURNS in the first half of 2009, dropping 4.5% in value as interest rates rose from historic lows last fall. 

On the corporate side, however, bonds have soundly beaten stock market returns in 2009. Investment-grade corporate bonds returned a solid 9.2%, according to Merrill Lynch data, and high-yield "junk" bonds returned a whopping 29%.

This is good news for me and for my Forbes Tax Advantaged Investor subscribers.  In hotlines and in each monthly issue of this fixed-income investment newsletter, I make updates to our model portfolios of bonds, preferreds, and other fixed-income securities.

We've been cleaning up in 2009!  And there is still big money to be made.

Click here for Marilyn Cohen's current municipal bond and bond fund buy-list found only in Forbes Tax Advantaged Investor.

The April issue of Forbes Tax Advantaged Investor recommended AutoZone bonds with a 5.5% coupon due 11-15-15 at 88.96. Recently these bonds traded at 97, for a principal profit of $80.40 per bond--more than a 9% profit on principal--not including the substantial 7.66% yield that readers who acted on my recommendation still enjoy.

The May issue of Forbes Tax Advantaged Investor profiled Jefferies Group. The equity investors were optimistic, but the bond investors foresaw trouble ahead. Someone was wrong. After our analysis we determined the bond investors were overly negative. We enthusiastically recommended Jefferies Group 7.75% bonds, due 3-15-12, at 93.5. These bonds recently printed at 100.25 for a principal profit of $67.50 per bond--a capital gain of 7% in just one month. Plus, investors who followed my advice locked in a juicy 10.46% yield. 

We didn't stop there.  We backed up the truck for Jefferies.  Forbes Tax Advantaged Investor also recommended Jefferies Group's 5.5% bonds due 3-15-16 at 79. These bonds recently traded at 87 for a principal profit of $80 per bond--more than a 10% profit before including interest earned. People who bought with us grabbed a 9.79% yield. 

Big Opportunity in Bonds

There are tremendous rewards in bonds for investors willing to do a little homework--or at least to listen to someone like me who scours the fixed income landscape in my money management business for bargains day in and day out.

Many people have lost their shirts in the fixed-income market, and unless you know what to look for in a bond and its issuer, the deck is stacked against you as if the dice were loaded in the casino's favor.  The unwritten rules of how to keep your money safe and still prosper in the bond market have all changed.

The Forbes Tax Advantaged Investor shows you how to beat the house. Each monthly issue is packed with essential information for your money invested in fixed-income instruments. This is information so valuable that no bond investor can afford to be without it. 

Here are some questions you need to ask yourself to determine if you need help navigating the bond market?

Are you up to date on your state's financial situation? I live in California…and I can attest to budget deficits. I know what budget crises do to municipal bond prices. The Forbes Tax Advantaged Investor tells you which states are in trouble and what to do about it.

Do you own municipal bonds that are in fact school bonds? How safe are they? Are your bonds part of the state's intercept program? Do you even know what an intercept program is? If the answer is no to any one or all three questions, then just imagine how you will feel peering into an empty mailbox when bond payment time comes around.

Are you loaded with Certificates of Deposit that are ready to mature?  Repulsed by 2% yields? There's an opportunity for the taking that only Forbes Tax Advantaged Investor subscribers receive. Invest in municipal bonds with a substantially higher yield, greater safety and more liquidity.

Are you afraid of BBB rated corporate bonds? There are a number of BBB bonds that may fit your investment strategy. Every month the Forbes Tax Advantaged Investor provides specific BBB rated bond recommendations with CUSIP numbers to make finding them easy.

Do you think a fallen angel is an ornament that falls off your Christmas tree? Every month some appear in the Forbes Tax Advantaged Investor newsletter, boosting reader's profits.

The bond market is not nearly as transparent as the stock market. There is no ticker tape crawling across your television screen to tell you prices. Forbes Tax Advantaged Investor shows you explicitly what to buy and sell, leaving the legwork to me and the profits for you!

Timely Advice That Pays Off

As the financial markets collapsed last fall, Forbes Tax Advantaged Investor urged readers to take advantage of the historic opportunities to buy select corporate and municipal bonds when fear was rampant, prices were rock-bottom, and yields were sky-high.

Now our readers are reaping the windfall of smart and timely action.  The credit crunch has eased, but there are still great opportunities to capitalize on financial distress.  I don't want you to miss out!

Armed with the information you get with your Forbes Tax Advantaged Investor subscription, our Special Reports and our emergency Action Alerts you don't have to settle for the inflated prices and ill-advised recommendations of your stock broker. Knowledge-wise and information-equipped, YOU become the 800-pound guerilla in Bondland.