Buy Dividend Yielding Stocks Over High Yield Bonds – Altegris

Investing in the bond market might not be as safe as you think, especially as the Federal Reserve begins raising rates, according to Jack Rivkin, CEO and Chief Investment Officer for Altegris Advisors. Rivkin said while interest rates have been in a declining trend for more than thirty years that’s about to change, and investors should think about restructuring their portfolios. ‘Credit is going to become an issue at some point here, and that's going to cause some accidents,' said Rivkin. ‘We're moving into a period where it's not as easy just to buy ETFs or play beta in the market. I think you're going to have to be a little more careful.' Rivkin added that assets that have had strong returns in the past might not going forward due to the changing interest rate environment. 'No matter what the path is for how rates increase, they're going to increase,’ said Rivkin. He spoke to the TheStreet’s Rhonda Schaffler at the Camp Kotok, a meeting of economists, money managers, and others in the financial industry, held each year in Maine.