- "We are concerned that in this cycle high yielding investment could struggle sooner rather than later as the Fed moves off of its zero lower bound rate policy for the first time in over six years," writes Wells Fargo Advisors Chief Fixed Income Strategist Brian Rehling. "Should high yield come under pressure as interest rates increase or the economy deteriorates, the selling pressure is likely to be more extreme than seen in the recent selloff. In such a move, retail investors will have difficult reacting quickly."
- Rehling suggests investors cut high-yield exposure down to equal weight.
- ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC