FYI: The reach for yield is becoming a reckless lunge.
While high-quality bonds still have their place, too many investors are buying high-risk bonds instead.
Since June 30, according to TrimTabs Investment Research, a firm in Sausalito, Calif., that tracks how money moves in and out of the financial markets, investors have poured $1.2 billion into exchange-traded funds specializing in bonds from emerging-market countries. So far in July, investors have pumped another $2.8 billion into high-yield ETFs holding so-called junk bonds issued by below-investment-grade companies.
Put simply, one out of every 14 dollars invested in those two fund categories arrived in the past three weeks
Regards,
Ted
http://blogs.wsj.com/moneybeat/2016/07/22/investors-do-the-hard-thing-dont-do-the-easy-thing/
