phillips49

Why I'm Lowering My Bond Exposure

You'll never go broke taking profit, but I'll hold a while longer myself. The ETF throws off 10% cash every month that I've used to invest in stocks. The dividend held steady during the financial crisis. The NAV has risen some 24% since the first of the year, which indicates that investors have some confidence in the underlying bonds. HYG currently sells at 1% premium to NAV which is not over priced. The equites market is over bought at this point and I don't see a good place to park the cash. I'm thinking that stocks are more of a risk at this time than HYG.