Convertible Bond Is A Good Weapon For Both Offense And Defense.

Every time the market is extremely depressed, there are always different spirits jumping out of the world to be filled with indignation. In fact, if you have a heart to heart, look at these people's past statements, and they will feel that they are acting as ridiculous as a clown. On the contrary, mesoscopic Buffett is the great wisdom who sprinkle cold water in boiling and add firewood in cold winter. No matter how pessimistic the world may be about the outlook for the US economy, Buffett has repeatedly emphasized that he is an American citizen. U.S.A Strong confidence.

In addition to rational thinking, only those who are optimistic can survive for a long time in the market. If there is no such thing as cause and effect in 2005 and 2008, how can we expect to grow tens of times later? In the transitional period, there are still many defects and problems in China's economy and stock market, but there are also tremendous opportunities. Investment is the battle for a few people to win. When hot money is keen on usury, high-yield trusts and PE Investment And when the stock market is in the extreme downturn, I believe that the pointer of investment clock will soon start to turn again. Maybe this rotation is not fast or even repeated in 2009, but the direction will not change.

Optimism does not mean moths to catch fire. We choose a more secure way to deal with the uncertain market. This time, Buffett picked up the Bank of America, once again chose the preferred stock as a tool for offensive and defensive purposes, while domestic convertible bonds also had similar attributes. A friend who has an impression will remember that in 2008, the author wrote the article "learning old Ba and catching bonds" in the column, which explained in detail why it is one of the best choices to attack and defend in the late bear market through the conversion of debt, and it is compared to the "winter worm and summer grass" in the market.

At present, the valuation level of convertible bonds has dropped to the lowest level in 2008, and gradually moved closer to the lowest level before 2005, implying that investors are extremely pessimistic about stock market, liquidity, supply and demand of convertible bonds and so on. Relative to the investment of bank deposits and bonds, the debt nature of some of the convertible bonds provides nearly 5% of the debt income, while the value of convertible bonds is also attached free of charge. If the stock market has a systematic rise, the rising rate of strong convertible bonds can be comparable to that of the positive stocks. The rise of the medium class convertible bonds will not be significantly lost because of the increase in valuation. Relatively speaking, the current conversion of moderate value of the valuation of convertible bonds has been very limited, and in the process of recovery, the recovery may be greater. Prudent investors can give priority to the allocation of Guodian, Guodian, ICBC, Bank of China and other convertible bonds. Rate of return At the same time, investors will also be able to pay more attention to the expected price cuts.