Category

junk bonds

Bonds

What Are Junk Bonds?

The word "junk bonds" gets thrown around a lot, and investors mainly know about these investments because of the high returns that are promised.

But what exactly are junk bonds, and should one be in your portfolio?

We break down everything you need to know, and we also have alternative investments that you need to be aware of if you want to protect your portfolio...

Bonds

How to Get Aggressive and Profit from the Junk Bond Market Crash

You've just got to love the junk bond market. It's sent stocks on a nice year-end rally for us, and the profits have been sweet.

But don't fall in love with those stocks at these highs. The "help" they're getting from high-yield debt isn't going to last.

In fact, I believe the lull in the junk bond market is going to end in the first quarter of 2016. And I think the ugly sell-off will resume, and that storm is going to take stocks all the way back to their August 2015 lows – and possibly a lot lower.

A lot of people could lose big – well into the double digits – but I'm not worried at all. And when you see the perfect trade I'm about to show you, you'll be ready for the sell-off, too.

Now, this is a bold trade for sure, but it's an easy one, with limited downside risk. And even better, it will let us clean up when the carnage hits next quarter...