The "High-Yield" Craze Is Masking a Thoroughly Fatal Market Sickness
February 19, 2019 at 05:00 AM EST
Looking for yield? Be careful what you ask for... Every slick Wall Street operator is hawking junk bonds and leveraged loans as the ultimate drug for yield-starved investors - those seeking "juicy returns" in an otherwise risk-saturated bond market. What they'll find is suicide by credit overdose. I'm not surprised we've come to this point. Now, those who know me know I'm not a big fan of the U.S. Federal Reserve. Acting as Wall Street's un-official "drug pusher" for decades, it went hog wild post-2008, dispensing low-rate, cheap, and always freshly printed money at grotesque levels. As a result, today's "stimulus-addicted/Fed-supported" securities markets - thoroughly embroiled in bubbles - have crossed the Rubicon of debt and are now limping toward their own suicide, as you'll see. But it doesn't have to get you. Your broker and even your friends might think you look crazy for doing what I'm about to suggest, especially because the "good times" still appear to be rolling, but when the reckoning comes - and it will come soon - you'll look not only smart, but downright rich compared to the folks who didn't listen... Full Story Tags: The Fed To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The "High-Yield" Craze Is Masking a Thoroughly Fatal Market Sickness appeared first on Money Morning - We Make Investing Profitable .