Bonds are in a 35 year bull market. What happens if we see a scenario like that of 1950 to 1981?
Are high-yield ETFs the way to go in order to get at lease some yield?
How much can you lose in Treasuries if the yield goes up 1% or even 10%?
I discuss the risks and rewards of investing in bonds at this point in time.
Few of you know that bonds (NYSEARCA:BOND) had the nickname 'certificates of confiscation' back in the 1970s because investors kept seeing their money disappear due to higher yields and inflation.
In my video I also discuss the risks and rewards of owning high yield or junk bond ETFs (HYG, JNK) with their attractive yields of above 5%. While the yield might be tempting there are some hidden risks that few discuss, and I dig into what an ETF owns and the liquidity of such underlying assets to show you what is beyond the high yield and the actual risk.
Enjoy the video, and I am looking forward to your comments - or, I should say, I am ready for your comments, as this video will probably infuriate some.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.