Truth of the day: "The bond market sees something nasty in the economy." http://online.wsj.com/video/news-hu...4CA04D5F.html?mod=WSJ_Article_Videocarousel_3
the truth is that after what i have seen in 2005-2007-no way i'm going to risk my money investing in bonds. at 1% yield it's simply not worth it. individual can easily spread 500K-1M in various FDIC insured banks earning 2%. if inflation kicks in-those bonds investors will be raped,when they going to unload those bonds. and if there is a deflation-company's can go bankrupt in a blink..imo-cash is king today,cause the markets(stocks and bonds) are FUBAR
Junk bonds are yielding 8 and 1/2%. And here's what you never hear on the financial shows or trading boards, the proxy for junk bonds, the Merrill Lynch High Yield Master II Index, has been up 28 consecutive trading days through yesterday and the last 15 trading days it has been one historical high after another. Junk bonds and emerging markets bonds have been the place to be since mid December 2008. With corporations holding record amounts of cash on their balance sheets and spreads still above their historical norm, junk appears to still have some gas in the tank for further price appreciation in addition to their generous yields. Edit: Bad karma as it appears junk bonds had their first down day since July 1 today, August 10.