Jabari Young’s Post

Transcript

Have $1000 all these people walk around sure you have $1000 and you know Tracy Maitland is sitting up here and you're, you know, build your wealth through convertible bonds. What do you do with that $1000 and taking into the convertible bond market so you can start to make some money? Well, you can, you can buy a convertible bond in a company that you know and believe in and, and you wouldn't if you buy it again, if you buy a convertible bond $1000 or, or par and it probably going to explain par, par is $1000 a hundred cents on the dollar, right and so. And typically convertibles yield around 3%, right? And so you're giving up a lot of a little bit of yield to a straight corporate bond. So straight corporate bond might yield 4 or 5%, that's investment grade, right? So you're giving up a little bit of yield, but given the opportunity to earn a lot more if the stock goes up. And so to me, the way to build wealth is in the equity markets, right? Over time, equities way outperformed the fixed income markets. And typically you've seen equities return 7 to 10% a year over long periods of time, right, which is a. Which which is a great return. You have the the S&P this year up over 25%, right? So, so you have the opportunity to really benefit overtime investing in equities or or convertible bonds that give you equity like returns with a lot less risk. So let's say you invest in the stock, but the market goes down for whatever reason, maybe there's a war, maybe who knows what happened, tariffs or or putting a big uncertain what's going to happen in the economy in 2025 and 2026. But if you buy the convertible bond. Any good company, you know that you're downside risk is going to be that 3 or 4% yield that you're getting and assuming again you buy that bond at 100 cents or they're or they're about you're gonna get most of your principal back. Assuming that company is a good credit, yeah, there's a stock goes up, you're gonna enjoy a majority of the stock on the upside. So, so you either buy that convertible.