News Article | September 25, 2013 |
Barron’s (September 25, 2013): Pay attention to those who are greedy when others are fearful.
Sierra Investment Management is diving into municipal bonds and high-grade corporate bonds this week. Ten days ago, it didn’t own either.
But the Federal Reserve last week indicated it will not curtail its monthly economic stimulus, in the form of its $85-billion asset purchase program. Sierra has “been buying munis and high-grade corporates with both hands in the last few days,” on the belief that the Fed may not reduce that stimulus for another six months, says David C. Wright, a portfolio manager at the California-based investment advisor.