The following video is part of our "Motley Fool Conversations" series, in which Motley Fool senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss emerging trends in technology.
In today's edition, Jeremy and Eric look at the telecom sector and its recent struggles. Yields are on the rise, and that's not necessarily a good thing, as collapsing share prices are the catalyst behind these rising yields. The main fear in the industry is that a slowdown could crimp access to cheaper debt that these telecoms rely on for their debt-heavy capital structure. Eric reminds investors not to chase the highest yield alone, but to manage risk and create a basket of high-yielders that can survive a downturn and protect principal.
Both Eric Bleeker and Jeremy Phillips own shares of no companies listed above. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of AT&T and Intel and creating a diagonal call position in Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.