Showing posts with label risk reward. Show all posts
Showing posts with label risk reward. Show all posts

Monday, July 9, 2007

Risk/Reward. The two should track each other. However in recent years of easy money the two have diverged to a degree never seen before. I just read today that an Iraqi bond is only paying 10% yield. You can find plenty of emerging market stocks paying nearly a 10% dividend. Why in the world would you buy the former? I guess because the debt market is even more overbought than the stock market?