Hmmm.....are you still thinking junk is going to implode? Based on this week's performance so far it looks like it will be recovering and may even exceed its high around Jan 15. As I've said before when Niterunner makes his dramatic exit statement I'm a buyer of junk! What say you Niterunner? Are you still out of junk?
You never give up Derrillp aka The Right Stuffer. Can't you ever leave it alone? You just love to incite. I said in my post I thought I could make more money in 2010 in MSFT and SHAW than junk bond funds and those were my only two positions besides 5%+ in junk bond funds. So far so good. Are you aware of what the junk ETFs have done in after hours trading after the Fed raised the discount rate? Good luck in your junk bond funds in 2010. Junk bonds should be OK unless the Fed really gets aggressive in raising rates. I just think select stocks such as SHAW (nuclear) and MSFT and even CSCO among others offer more opportunities.
I think the raising of the discount rate is a 1 day non-event (bad for the option players though - stocks are getting hit pretty hard and timing is everything for them - the longer end (10s & 30s) of the treasury curve are actually rallying). JNK was only down .26% after hours while HYG was down .86% but with only 4400 shrs being traded. PHB didn't even trade.
I actually like junk here. HY CDS spreads have been coming in rapidly and there is now good momentum to the upside. I am still underweight but may not be if the momentum maintains. New highs? Perhaps this is 1992.
So much for the futures Niterunner. HYG and JNK are up today in morning trading. How do you like that?? Futures don't mean anything. When are you getting back into junk? You're going to miss another nice up side run plus the dividends.