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Author: Rayvt Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: May want to re-think traditional allocations Date: 9/26/2012 8:43 PM
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Blaring auto-play videos are amateurish. Regardless of whether a site visitor may be at work or not, it's rude.

"High yield bonds" = junk bonds. That's the definition.

If you really think that you can get ca. 6% in a safe, low-risk fixed income security these days...well all I can do is shake my head and back away slowly.
Reaching for yield is well known as being one of the more extremely dangerous things to do in fixed-income investing.

The first thing to do when somebody presents an investment strategy is to google it. That's what I did with "2-leg reset indexing". The only hits were posts by Dave. Clearly this strategy is either totally unknown or is commonly known by another name.

Now google "Reaching for yield". 31 million results.

As far as firms offering it pre-packaged as a service, it's just not true. Investment companies invest in the same market as everybody else. They do not have access to bonds, etc. that are not also available to Pimco (BOND), iShares (HYG), Vanguard, etc.
So, yeah, if you wanted to DIY, it's trivially easy to do.

As far as risk, take a look at the charts of HYG and BND. Take a look at the 5 year chart and take a look at that 40% loss that HYG had.

Dave, you really do yourself a dis-service by pushing this cr*p. your good advice on mortgages is washed away by these claims that a high risk strategy is safe.
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