FX2 | Fixed-Income2.com, From day 1 this FX2 portfolio is designed to protect and return our clients principle. As with any investment there are no guarantees, however our track records speaks for itself. We have installed a strategy that has worked extremely well in some of the most difficult markets we have ever seen, we buy high yielding short bonds and hold them to maturity. We all know that economically, the last 5 years have been some of the hardest times American citizens of our generation have ever witnessed, and in other parts of the world its been even worse.
To protect our clients principle we do our own research, first focusing on the companies position, the industry the company is in, and the position of the company inside that industry. We are attracted to monopolies with few if any direct competitors, we shy away from, if not run from commodity type service companies that provide a easy to repeat services and have hundreds if not thousands of direct competitors. It’s a simple strategy. If your a betting man and want to insure your horse will come in first or second place, what do you do? It’s easy! You just make sure there are only two horses running in the race, you chance of surviving if not winning is far higher.
We like companies with few direct competitors, also known as natural monopolies. Companies with few competitors often have higher margins, lower level of debt, and we can find bonds often outside the US with much greater yields in institution sizes. That’s step one. Next we review the balance sheets, cash flow, cash and profitability against their debt levels and payments. Our core focus of this research is to help our clients receive their principle back. Read more