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Calling investors "handcuffed volunteers," Howard Marks says the people buying high-yield (HYG,...

Calling investors "handcuffed volunteers," Howard Marks says the people buying high-yield (HYG, JNK) at 6% are doing so only because T-bills pay 0.25%. These investors weren't buying 10 years ago at 12% or 4 years ago at 20%.  "Are they doing it because they are pie-eyed optimists? No, (but) because they have to have income to eat."
Comments (3)
  • High yield in 2013 = banks and housing stocks in 2006.
    19 Feb 2013, 08:56 AM Reply Like
  • Howard may not be the last person to notice this, but he is pretty far down on the list.
    19 Feb 2013, 10:34 AM Reply Like
  • Eat? Now I know why I'm losing weight. The money is needed to pay taxes from the baby boomers trapped into traditional IRAs that are only a few years away from minimum mandatory distributions where some will be getting hit with AMT taxes the rest of their lives. I need the cash to pay some taxes up front and move stocks into my Roth IRA. The Government IRA Ponzi scheme is for them to get it all.
    19 Feb 2013, 10:37 AM Reply Like
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