
Last week, Barron's recommended that investors start buying beaten-up high-yield bond funds that are trading at big discounts and yielding 10% or more.
Their advice: "Take advantage of this rout in risky debt."
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
Last week, Barron's recommended that investors start buying beaten-up high-yield bond funds that are trading at big discounts and yielding 10% or more.
Their advice: "Take advantage of this rout in risky debt."
Not so fast! Some stocks are discounted for a very good reason: Buying them could cost you money...
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
Last week, Barron's recommended that investors start buying beaten-up high-yield bond funds that are trading at big discounts and yielding 10% or more.
Their advice: "Take advantage of this rout in risky debt."
Not so fast! Some stocks are discounted for a very good reason: Buying them could cost you money...
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
I'll be blunt: Don't believe the stock market gains we're seeing. They're not a sign of good times.
I've spent more than 20 years in the global credit markets, and from my position, I can see a destructive wave spreading out that will hit the stock market and scuttle the economy.
But... the collapse of these funds, and the chart I'm about to show you, point to an immense opportunity - one where companies in desperate need of liquidity will come to you.
We're not there yet, so there's time to prepare, but this will be big...