W.E. Donoghue Research Report: Potential For High Yields Exist Amid Impending Interest Rate Increases

NORWOOD, Mass., Jan. 9, 2012 /PRNewswire/ -- W.E. Donoghue & Co., Inc. (W.E. Donoghue), a provider of professional investment management services to individuals, institutions and corporations, have released a new research report titled "High Yield Investing in a Low Yield World." The report, written by Jeffrey R. Thompson, Senior Vice President and Portfolio Manager of W.E. Donoghue, discusses the likelihood of a gradual increase in historically low interest rates and the investment strategies that can generate positive returns and mitigate market volatility once rates increase.

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"This research report validates the signs that indicate interest rates will eventually increase, and we believe investors can prepare for this with an investment strategy that includes mutual funds with hedged strategies and high yield bonds," said Mr. Thompson. "We hope that investors will use this research to educate themselves about these asset classes in order to maximize their opportunities for greater yields during uncertain economic climates."

The report also details how investing in high yield bonds before interest rates increase could offer a source of stable yields during periods of market volatility. These types of bonds are traded based on credit quality and interest-rate exposure. While not immune from the looming concerns over foreign debt, during an improving economy credit quality can potentially trump interest rates. As measured in September of this year, the high yield market outperformed the S&P 500 index over both a five- and 10-year basis.

"Now is the time for investors to understand high yield bonds and the mutual funds that include them in their holdings before interest rates begin to increase," said Mr. Thompson. "We are committed to educating investors on how global market factors affect these asset classes to help them achieve their financial goals."

To obtain a copy of the white paper, please visit W.E. Donoghue's website. For media inquiries, please contact Dana Taormina at 973-850-7305 or [email protected].

About W.E. Donoghue & Co., Inc.

W.E. Donoghue & Co., Inc. (WEDCO) is a registered investment advisor established in 1986. The firm is a pioneer in delivering tactical asset allocation solutions. WEDCO manages in excess of $600 million for individual and institutional separate account clients as well as mutual fund clients. The firm has been recognized by Nelson's Institutional Rating Service as one of the "World's Best Money Managers." The firm emphatically does not subscribe to the buy-and-hold approach. WEDCO offers separate account strategies which employ exchange traded funds (ETFs) and traditional mutual fund allocations as well as variable annuity strategies. In addition, the firm is the adviser to the Power Income Fund.

Contact: Dana Taormina
JCPR
973-850-7305
[email protected]

SOURCE W.E. Donoghue & Co., Inc.