Yet as stock markets hit record highs and the yields on volatile junk and emerging market bonds plunge, this view<br />that market corrections should be seen as a buying opportunity, as opposed to a warning to be heeded, has begun to worry investors.<br />Nishant X. Upadhyay, an emerging market bond investor at HSBC Global Asset Management, took the opportunity late last year to buy Turkish government bonds, betting<br />that worries about President Recep Tayyip Erdogan and his political ambitions were overdone.<br />But the question is: Do you want to be sitting in cash right now or investing your dollars in alternative markets?”<br />Fund managers with a long memory argue that while it may be true<br />that markets are richly priced, it would be a mistake for investors to try to predict when markets will fall and remove their funds accordingly.<br />Buying Into the Turmoil: Investors Embrace the Risks -<br />By LANDON THOMAS Jr. MAY 10, 2017<br />Be it stocks, bonds or more complex derivative bets, investors following this Wall Street maxim have reaped robust rewards in recent years.<br />“No doubt the spreads are tightening,” he said, in describing how the recent boom in the asset<br />class has made them less attractive relative to lower-yielding bonds in developed markets.<br />“I am holding more cash than I usually hold in my funds right now.”<br />To be sure, some of this recent spate of buying can be explained as investors looking for bargains in beaten-down areas — like emerging markets.
