Add yield and create a safer portfolio

I cannot think there is much value left in the short Treasury market.  In most economic scenarios of slow, stable economic conditions with visibility into earnings and economic policy for the next 18 months, shorter duration fixed income portfolios will benefit by moving into investment grade, Corporate portfolios. 

For those of us who use ETF's, the trade is Sell SHY and Buy CSJ. 

1.  You double your monthly income
2.  Corporate spreads will tighten with economic improvement

Posted by Bradley Fluetsch at 7/22/2010 10:47 AM
Categories: Speculation
Tags: yield income corporate short bonds government spread cash fixed duration
 

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