A 5% Junk Bond Bubble: What Could Possibly Go Wrong?

In rare situations, it actually is better to sell off the stock of companies you own rather than try and live off the income. For those of you who pay attention to market history, you know that we are living in one of the worst times of high-yield American bonds with junk status that we have ever witnessed.

Right now, the junk bond yield of something like the Bank of America Merrill Lynch Index is at 5.002%. For a quick refresher on the topic: last year, the yields of junk bond indices fell below 5% for the first time in American history, and we are flirting with that mark again this year. My … Read the rest of this article!