The ‘founder’ of the High Yield market, Michael Milken, was in town yesterday at a conference I attended. Mike is the guy who restarted the High Yield market in the 1980’s (high yield bonds were around during the great depression) when he saw great returns available on fallen angels. Mike served 22 months and paid almost a billion dollars in fines for securities fraud after making a fortune at Drexel Burnham Lambert. He has since won a battle with prostate cancer and has become best friends with the guy who put him behind bars, Rudy Giuliani.
His talk was on the subject of change and how the world will be different over the coming decades. The main themes were the rise of the BRIC economies and the value of human capital. Both his charitable work and for-profit enterprises are focused on healthcare and education which he believes will be the source of economic growth in the future.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.