Dan Fuss of Boston-based Loomis Sayles has advised investors that U.S. investment-grade corporate bonds currently offer an outstanding opportunity that should not be missed by those looking to grow their wealth, Reuters reports.
He told the news provider in an interview that these bonds provide "the best buying opportunity" he has noted in 34 years. In September 1974, equities and bonds were both in bear markets, Fuss said.
The vice president of Loomis Sayles explained that he has been paying an average price that ranges in the low 70 cents on the dollar to purchase long-maturing "AA"-rated corporate bonds.
Merrill Lynch data cited by Reuters indicates that corporate bonds with this rating currently average a yield of around 7 percent.
The current uncertainty in the U.S. economy has had a tumultuous effect on the stock market, which has seen record falls in recent days. Many people have been moving their money away from what they perceive to be risky investments.
Fuss has 50 years of investing experience and was named to the Fixed Income Analysts Society’s Hall of Fame in 2000.