WSJ’s Jason Zweig asks: Are the investors – largely
individuals and their financial advisers – who have so far this year pumped
some $37 billion into high-yield (“junk”) bond funds irrational?
There are some signs that the junk-bond market may recently
have been on the verge of overheating, although veteran analyst Martin Fridson
sees no great cause for concern. Big junk-bond exchange-traded funds have taken
a pounding since the election.
But if anyone is to blame for excesses in high yield, goes
the standard Wall Street narrative, it is the usual villain: Main Street. Much
recent commentary, here, for example, takes the traditional line, implying that
big institutions are the “smart money” and individual investors the “dumb
money” suckers. That narrative is
intuitively appealing, but …..
Round up the usual suspects....no seriously, keep reading at http://blogs.wsj.com/totalreturn/2012/11/16/do-junk-bond-investors-have-garbage-for-brains/
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