Investing Daily

As signs continue to point to recovery, the question of inflation becomes more pressing.

This beaten down bond fund still has potential.

Join the foreign legion with these bond funds.

Bargains still abound among corporate bonds.

Government-backed bonds are all the rage.

"I've been told by some very large investors that have put their own money into the fund as well as their clients' assets that the appeal resides in our management style--we construct and adjust the portfolio in a way that limits potential blowups."

This fund was a high flyer for years, but a brutal 2008 has many investors wondering if its manager has lost his touch.

We sit down to discuss the wide world of bonds with Carl Kaufman, manager of Osterweis Strategic Income (OSTIX).

If you know where to look, there's plenty of opportunity in corporate debt.

With the nation’s housing and mortgage markets in tatters, it’s all too easy to dismiss any real estate-related investment as foolhardy. But this fund, which focuses on government-backed mortgage debt, has proved a safe haven in a stormy market.

 

Municipal bonds are among the most attractive investments in the fixed-income market right now. As bad fiscal news continues to flow from states, yields on even the best municipal bonds continue to climb.

Although there are still lingering concerns about the state of the global economy, conditions seem ripe for a solid 2009 for the fund.

With interest rates at all-time lows, Federal Reserve officials are begging investors to take on additional risk to realize any respectable returns. There are prudent ways to do so without losing your shirt.

Inflation still lurks.

I’m convinced this recession will drag on for at least the first half of 2009 and quite likely into the final months of the year. If I’m right, the employment picture may not start to brighten until sometime in 2010, and the unemployment rate could approach the double-digits. But this doesn’t mean the market won’t rally this year.

Closed-end funds hold significant surface appeal, but more often than not there are better options available.

All told, the economic data continue to look weak, but there’s a distinct possibility that investors are beginning to factor that into their decision making. And if historical norms hold, the markets typically turn about six months before the broader economy.

While everybody is banking on the credibility of the federal government to finance, underwrite, guarantee and even buy into banks, insurers and potentially even auto makers, local governments have been treated as if they’re toxic mortgage companies.