Which Of These Would You Prefer To Own?

Tue, 06/12/2012 - 02:00 EDT - Seeking Alpha

By The Financial Lexicon:If presented with the choice of investing in a Spanish 10-year bond yielding over 6.50%, the S&P 500 (SPY), or U.S. focused high-yield corporate bonds (HYG), which would you choose? I know there are some readers who will immediately say, "None of the above," and while there are days I might be tempted to agree, I do think there is a clear favorite among the three at today's prices: high-yield corporate bonds.As I mentioned in my recent article, "On The Spanish Bailout and European Football," Spanish bondholders are well aware of the fate Greek bondholders met. Until investors can be reasonably certain that Greek-style write-downs won't spread through Europe, fixed income investors should err on the side of caution and stay away from European sovereign debt. Furthermore, the Spanish economy is in disarray with no signs of anything on the horizon to fix the massive problems it faces. NotComplete Story »

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