Thanks for the article. It seems as if buying investment grade bonds could still offer value. Junk is now price quite high. I have not added any to VWEHX for several months, but I'm still buying short term investment grade and keeping total average durations short for the overall portfolio (no more than an average duration of 4). We never know when the FED might decide to do a sudden about face on interest rates (possibly even as soon as later on this year). Although I don't really believe it's likely that interest rates will go up before next year, I don't want to get caught by any sudden nasty surprises.
Yeah, I think we all know that high yield is richly priced. But then the environment for HY is perfect at this point in time so it should be richly priced.
I am out of HY for now and will only reenter if we have a correction or the Russell 2000 sets and holds a new high. The Russell set a high on 1/14 and hasn't revisited it yet though the other averages are still setting new highs. I am looking for a correction of at least 3% in the HY mutual funds (VWEHX maybe less) and at least 6% in the junk ETFs. Of course once these things get started their severity is hard to predict.