Author Topic: Warning on Corporate Bond Market crash  (Read 597 times)

ConfusedInvestor

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Warning on Corporate Bond Market crash
« on: January 09, 2019, 09:59:24 AM »

Today's news have Gundlach  warning on corporate bond market. more details below

https://finance.yahoo.com/news/gundlach-debt-financed-share-buybacks-141337907.html


I have few high yield funds in T rowe price and Vanguard.

 should I move this to Vanguard High-Yield Tax-Exempt Fund?

seeking your suggestions.

thx
 

ysette9

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Warning on Corporate Bond Market crash
« Reply #1 on: January 09, 2019, 11:29:25 AM »
The answer to the question “should I try timing the market based on my gut/some random thing I read online/ what my neighbor told me?” is always:

“Time in the market,
Not market timing”

Don’t time the market.

“Just keep swimming. Just keep swimming.”


Perhaps a better use of your time than reading yahoo finance would be to research and write your own investment policy statement so the changing winds of stock and bond markets don’t make you want to make changes to your portfolio.
https://www.bogleheads.org/wiki/Investment_policy_statement


facepalm

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Re: Warning on Corporate Bond Market crash
« Reply #2 on: January 10, 2019, 09:08:25 PM »
No one can successfully time the market. Though you might get lucky.

Ysette9 has great advice.



gpyros85

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Re: Warning on Corporate Bond Market crash
« Reply #3 on: January 11, 2019, 12:22:26 AM »
This type of question might not be right for this buy and hold type crowd here.

However, I feel you should have some buying power when equities do get fire sale. This being said, I do belive the fire is started and a lot of poorly timed buy backs have inflated the corporate balance sheet with bond issues for these buy backs. This is find in a low interest rate enviroment but when every 100 basis points increase deducts from the net profit it will reflect these buy backs were poorly timed.


Good Luck out there!

MaaS

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Re: Warning on Corporate Bond Market crash
« Reply #4 on: January 11, 2019, 07:25:21 AM »
This type of question might not be right for this buy and hold type crowd here.

However, I feel you should have some buying power when equities do get fire sale. This being said, I do belive the fire is started and a lot of poorly timed buy backs have inflated the corporate balance sheet with bond issues for these buy backs. This is find in a low interest rate enviroment but when every 100 basis points increase deducts from the net profit it will reflect these buy backs were poorly timed.


Good Luck out there!

Agreed.

It's pretty likely that corporate debt is going to cause quite a scare.  But when? Impossible to tell. Enough lowered earnings guidance over the next month could do it, or it could be years and years away.

SwitchActiveDWG

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Re: Warning on Corporate Bond Market crash
« Reply #5 on: January 11, 2019, 08:12:58 AM »
The answer to the question “should I try timing the market based on my gut/some random thing I read online/ what my neighbor told me?” is always:

“Time in the market,
Not market timing”

Don’t time the market.

“Just keep swimming. Just keep swimming.”


Perhaps a better use of your time than reading yahoo finance would be to research and write your own investment policy statement so the changing winds of stock and bond markets don’t make you want to make changes to your portfolio.
https://www.bogleheads.org/wiki/Investment_policy_statement

This. The investment policy statement can be especially helpful. Review all the variables and then make decisions you can stick to.