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US Bond Outlook - Update: Stay Away from Junk

In a recent blog post, I recommended investing in high-yield bonds since they still seemed to have some capital appreciation left. The performance of high-yield bonds is similar to the performance of the stock market as a whole. You can see that in the last few days: the S&P500 is tanking, and along with it HYG, a high-yield ETF.

So, I changed my mind. Stay out of the high-yield stuff until Mr. Market has calmed down. You might miss a bit of the run-up, but you'll still get a nice yield.

Disclosure: no positions

Stocks: HYG