Here's some more fire to add to the never ending group think that bonds are in a bubble and ready to crash. Junk bonds - proxy being the Merrill Lynch High Yield Master II Index- have exceeded their 2007/08 pre crash highs by 59%. On the other hand, equities with the S&P 500 as the proxy have yet to exceed such highs and still languish 6% below pre crash highs. So what does this mean? I guess it means we draw our own conclusions based on whatever our bias might be.
Comments
I am 'ah think'in, that I am going to draw 30, 2" squares on a piece of cardboard; having the tickers of 15 bond and 15 equity funds of my preference; and then get out the darts and let rip for my "top 20 list". Each one would get 5% of the investment pot.
Our house could end with a 95% equity bond portfolio; some magic mix of 50/50 or ?.
Take care,
Catch
Hey, 007 - I'm happy we agree on something! (-: