I have never tried junk bonds. Do you have any experience with them?
I know the agrument for growth over yield in the long run. But for right now, I was wanting to generate a portfolio that also includes an income stream. My remaining cash at ~7.5% yield will let me hit my target.
This is under 10% of my protfolio that I am playing with. So I am okay with the risk for a sliver of high yield.
But I am not finding anything stock-wise that inclines me to buy.
One of my accounts offers restricted reverse convertable bond notes, but I don't have experience with those either. Anyone had good or bad luck with exclusive bond offerings?
I've never invested in junk bonds (high-yield bonds) because they give you equity like risk, with less than a Equity like rewards (unless the spread is very wide ((which currently it is not.))
In general looking for yield with Stocks is not a bad idea, because it gives you exposure to the value factor. As it stands right now, however, dividend stocks are completely overvalued relative to their historical pricing.
If you want to stretch for income, The last place I would look right now is at a dividend paying stock.
Better to invest in a small cap value fund, or a momentum fund if you want to chase a 7.5% income stream. Just sell 7.5% of it every year and you've done the exact same thing, only actually you are exposing yourself more to value and it is more tax efficient.
But if you want a high-yielding ETF, perhaps you should buy REM?