When it comes to bonds, D&I Daily agrees with Wall Street guru, Peter Lynch, when he says, “In bonds, you’re nothing more than the nearest source of spare change. When you lend money to somebody, the best you can hope for is to get it back, plus interest.”
If you’re drawn to bonds because of risk aversion, dividends are a far better choice. By identifying fundamentally strong dividend payers, a savvy income investor can get the safety of bonds, but with significantly greater yields.
As long as there’s been debt, a way to resolve unpayable debt has needed to exist. A passage from Deuteronomy in the Bible talks about creditors canceling debts every seven years. Throughout 19th century Europe, those unable to pay their obligations would likely wind…