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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Steve Lee who wrote (9084)11/29/2001 7:32:55 AM
From: Crimson Ghost  Respond to of 99280
 
Steve;

Thanks for that article!

Actually I am not as bullish on junk bonds as the article because I do not think the economic rebound next year will be as strong as they project. Nonetheless junk bonds should do pretty well because the economy will improve somewhat and junk bonds still are very cheap (just the opposite of the stock market)



To: Steve Lee who wrote (9084)11/29/2001 8:13:08 AM
From: Justa Werkenstiff  Read Replies (1) | Respond to of 99280
 
The underlying assumption in buying junk at this time is that the economy will have a full blown recovery and that there will not be anymore Enrons. But if that bet is wrong, and this recession is prolonged or deeper than most think, then junk would not be a place to hide. Bankruptcy fear will take care of any upside. Vanguard seems to High Yield seems to the highest quality junk for those interested.