If countries start to go down (default on debts) how do you think the overall economy in said areas will do? Now, LQD is made up of corporate debt...if economies start to do poorly and multi-nationals sell into those economies do less business, then the risk premium of their debt will rise as well as their stock prices fall. Just because it's a bond doesn't mean you can't lose money. Investing in bonds for appreciation as well as yield can only be done in times of distress...uh, LIKE NOW!!!
Posts like these only confirm my notion that bonds are becoming over bought, just like gold, making stock the eventual no-brainer. Like Buffet says, "I like shooting fish in a barrel, but it's best to wait until the water is drained."
will be watching pps movement closely. If stocks carry through Fridays gains that would make this a less attractive spot to have funds invested. If strictly looking for income, preferred stocks ( or ETF), most utility stocks, and some other high dividend payers (NLY. etc) offer more than this ETF. As I stated before, I bought this as a flight to safety.
scary! This was a "flight to safety" play a couple of weeks ago. My 1st buy was 113.68 and I bought again (2x qty) at 113.35. With a loss of around 3% and a yield of about 4.6% this will take the better part 8 months dividends. The ironic thing about this is that utility stock pps rose substantially today. Will continue to be a holder until after big Ben speaks on Friday. IMO the stock market will sell off at that time and we could have a decent recovery with this etf. Also, the MUB-- etf for municipals has not participated in the recent downward spiral as this etf