The Dow, Standard’s & Poor’s and NASDAQ keep hitting new highs – will it ever stop? Some might think that investing in the stock market today is wise. This would be the traditional investment strategy.
James Dondero, co-founder and President of Highland Capital Management, offers an alternative investing strategy and was recently discussed in Barrons. Why is Barrons talking about alternative investing strategies and themes, while the traditional investment strategy is so successful?
“Buy Before the Bull Market”
As the world watches the bull market go higher, some are saying “I could’ve, should’ve and would’ve.” The reality is that the present bull market began way back in 2009. That is when fear ruled.
Even CNBC Michael Santoli warned that “2017 could be the bull market’s big finale.” Why? Well, first of all “what goes up, must come down.”
For 8 years, investors have bid up the top stocks around the world. Now, their prices are sky high. Unfortunately, their returns may not match this irrational exuberance.
The stock markets are truly in new territory, which scares many. Some believe the markets are due for a correction. If you bought securities in 2009, then it might be time to cash in your chips.
“Buy Nascent Themes”
On March 25, 2017, Barrons interviewed James Dondero and focused on his “themes.” While it is a nice concept to buy the Dow index, most investors will need to focus on specific securities. The alternative investment strategy of James Dondero has borne fruit.
Just as the naysayers were buying securities at record lows in 2009, James Dondero was buying Argentina investments during their 2012 debt crisis. In fact, at one point Argentina’s sovereign debt accounted for 24% of the Highland Capital fund assets. Highland saw its Argentina bonds “purchased at 70 cents rise to 120 cents.”
One of the secrets to investment success is timing. Today, James Dondero’s charitable organization, “Reasoning Mind,” is preparing Texas youth for the future. Barrons, CNBC and James Dondero understand that “bold bet timing” is a key ingredient for future success.