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junk bonds will crash [sorry the article is indeed junk]
I'm not following this article. The author says junk bonds will crash because "the default rate will soar, sooner or later." Why is that? Are these companies struggling so much that they won't be able to repay their debt (even at record-low interest rates)? You don't get that sense from the stock prices these days.
Stansbury is a real piece of work. He was fined 1.5 million dollars for security fraud in 2007. He also has been predicting economic collaspe for the U.S. via an online 2011 internet video and infomercial. You can read all about him in the link below.
Edit: I wonder how his August 2011 recommendation to go 50% gold 50% cash is working out. And that was only if you could not actively short stocks. Shorting stocks then would have been a real financial buster.
As for junk bonds, even I said awhile back that not only were they overpriced but insanely overpriced. After their recent decline they are more in line with fair value albeit still a tad rich. If there ever is carnage such as a 20% decline in junk bonds (much less an inexplicable 50%) you better believe stocks won't be far behind and much worse.
A side note might indicate for the article; that if the junk bond market is crashing or has crashed per Mr. Stansbury, there would likely be many other investment fires already in place and in full view at the corner of Investor Ave. and Told Ya So Blvd.
johnN, what is your opinion of the article and it's story?
Comments
http://en.wikipedia.org/wiki/Porter_Stansberry
Edit: I wonder how his August 2011 recommendation to go 50% gold 50% cash is working out. And that was only if you could not actively short stocks. Shorting stocks then would have been a real financial buster.
As for junk bonds, even I said awhile back that not only were they overpriced but insanely overpriced. After their recent decline they are more in line with fair value albeit still a tad rich. If there ever is carnage such as a 20% decline in junk bonds (much less an inexplicable 50%) you better believe stocks won't be far behind and much worse.
Stansbury/SEC
Marketing; ah, yes; what a publisher needs, eh?
A side note might indicate for the article; that if the junk bond market is crashing or has crashed per Mr. Stansbury, there would likely be many other investment fires already in place and in full view at the corner of Investor Ave. and Told Ya So Blvd.
johnN, what is your opinion of the article and it's story?
Well, of course
If I mother was alive - may her soul rest in piece - I would tell her she forgot to teach us how to BS.
I'm with you on this.