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when is time to bail on junk?

was watching Druckenmiller interview w/ GS. He was saying that he buys the junk bond crash every 7 years it seemed to him but didn't own them long term.

When is time/what will be the signs to sell the junk bond funds like ARTFX? What do you think the current yield of that fund is?

Comments

  • edited February 2021
    The yield, listed as per Morningstar, is 5.8%. That might make it worth owning for me. If junk bonds were on my radar. I don't try to time highs and lows in the Market. Distributions are consistently 4-5 cents each month. Barchart rates it a 100% buy.
    https://www.barchart.com/etfs-funds/quotes/ARTFX/opinion

    Morningstar: "...Manager Bryan Krug's investment philosophy is rooted in cash flow-based lending rather than the more traditional asset-based lending. This often leads him to find value in so-called asset-light companies, such as software firms and insurance brokers, which generate strong cash flows but often carry lower ratings from the rating agencies. As a result, the strategy holds hefty doses of CCC rated debt; Krug also runs a concentrated, idiosyncratic portfolio, with the 10 largest issuers accounting for roughly a third of assets..."
  • thanks crash. I guess you got to dollar cost average out as well in investing.
  • FIFO makes the most sense to me, in my situation. I don't worry so much about taxes on mutual fund profits. FIFO gives me maximum profit, between what I spent to buy and the amount of the proceeds I receive when selling. :)
  • edited February 2021
    Not sure
    With heavy Feds support/easing cash flows, monetary fleecing, corp bonds market maybe stabilize until end 2023

    https://www.thebalance.com/is-the-federal-reserve-printing-money-3305842

    Corporate bonds /US companies may still get infused cash from central banks. Mortgage and real estates may still be stabilize w new monies but the 1.9 trillions dollars question when will it all end

  • Monetary summation of things investing related.

    Imagine everything will be alright in the end, and if it is not yet alright, then it is not yet the end.
  • MJG
    edited February 2021
    Hi Guys,

    Never!!! If you considerate it junk, never invest in it. It is likely that most other folks evaluate it in the same way. Therefore downside prospects and pressures are more likely than upside odds. It is tough enough holding firm with stuff you like given market turmoil. We are often too much influenced by other folks opinions. Trust your own judgements!

    Added Later. If you don’t trust your own judgement, you shouldn’t be making investment decisions. Hire someone you trust to make solid decisions. We are unique individuals with unique wants, needs, and desires. Given the same situation, a good decision for you might not be good for me. That’s why a robust marketplace exists.

    Best wishes to all.


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