BOND SELECTION

At Scholtz & Company, bonds represent a stable source of income for our conservative balanced and income portfolios. We, therefore, purchase only investment-grade bonds (i.e. rated at least BBB- by S&P or Baa3 by Moody's) or better. Our strategy is to exploit the direction of interest rates over an economic cycle. Additionally, we monitor government/corporate bond spreads in order to identify the best relative values.  We also analyze the yield curves to target buy opportunities at points in the curve which will offer maximum short term returns in a stable interest rate environment.