“A Smarter Way To Invest”
Brandywine has been honored as a finalist in the ThinkAdvisor Luminaries Award for its groundbreaking innovation of “Risk Replacement.” This accolade celebrates exceptional financial services firms that drive meaningful change through innovation and thought...
Introducing Enhanced and Target Date Funds This article spotlights Mike Dever and Brandywine Asset Management’s distinctive approach to seeking high returns with reduced risk through their innovation of "Risk Replacement." Dever, the firm’s founder, has crafted a...
Revisiting the 60-40 Portfolio Strategy Business Insider recently interviewed Mike Dever to discuss some of the 20 investment myths he covered in his bestseller, Jackass Investing: Don’t Do It. Profit from It. One of these myths challenges the widely accepted notion...
In a recent episode of Money Matters TV, host Mike Dever, founder and CEO of Brandywine Asset Management, teamed up with co-host Jeff Watkinson to provide viewers with their views on the opportunities in today’s stock and municipal bond markets.
In response to a viewer question, Dever discussed the bankruptcy rates among companies listed in major indexes like the S&P 500. Despite tens of thousands of businesses filing for bankruptcy annually, none of the S&P 500 constituents went bankrupt last year – a testament to the robustness of large, established firms. This insight underscores the relative safety of investing in major market indexes, which tend to experience far less turnover compared to smaller enterprises.
Jeff Watkinson shifted the focus to the municipal bond market, emphasizing the security of investment-grade bonds. Did you know that while the default rate since 1970 for investment-grade corporate bonds is approximately 2.2%, the default rate on investment-grade municipal bonds is less than 0.1%!?
The discussion delved further into the pros and cons of investing in municipal bond funds versus individual bonds. While municipal bond funds offer diversification and professional management, which can be appealing for many investors, individual bonds grant investors greater control, tax optimization and insulation from the volatility that can affect a bond fund. This is especially true for any fund that contains a large number of illiquid municipal bonds, as the fund’s price can deviate substantially from its long-term value when other investors emotionally sell during market downturns. That said, managing individual bonds requires a more hands-on approach that favors those with a dedicated advisor.
Don’t miss the opportunity to watch the full episode and gain a deeper understanding of the strategies discussed. Empower yourself with knowledge to make informed decisions and achieve your investment goals.