Why Junk Bonds Are Too Risky

Stocks may be expensive, but that doesn't mean that now is the time to invest in bonds - and certainly not junk bonds. According to 'the dean of high-yield', junk bonds are about to get even more risky.

Now that stocks are expensive, and real estate price tags are too big (according to Alan Greenspan), is it time to invest in bonds?

In short, no. Bonds of companies that seem to have any risk at all are a bad deal right now. In particular, I suggest you avoid the temptation to invest in junk bonds (also known as 'high-yield' bonds), and emerging market bonds.

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