(03-06-2020, 09:58 AM)Otter Wrote:(03-06-2020, 09:14 AM)fenders53 Wrote: vbin
Jeffrey Gundlach, is another one you might add to you video list. Maybe not now, as he is sobering as well. He is a bond wizard, and became a billionaire that way. Bonds drive the stock market, and he is very informative. He is another one of the few that called the financial crisis in advance and made a fortune. He'll be early with his next call no doubt, but he is still very educational to listen to. When a true crash comes, his thesis is high quality corporate bonds will once again over-react and get way too cheap. You can get bull-market growth stock returns when a solid company like MMM or BA (just an example) takes a big hit because things got rough and they are suddenly not very profitable for a few quarters. Their bonds get roughed up and sell at a huge discount when their is panic. Just another way to diversify. It appeals to me because you aren't dealing with decaying option premiums when you get the entry timing wrong. Just requires some patience for companies you know are not going to default in the end.
I'd love to see yields on MSFT and JNJ paper spike.
Wouldn't we all.
JNJ, AAPL and MSFT and the very few elite might not make the list short of market Armageddon, but there are a lot of single A and BBB+ bonds that get way too cheap when the market panics. The 0% interest rate thing is probably going to have to show signs of not working for this to happen. Some level of actual recession. A sound company like a major industrial, or maybe even an oil major gets in a little midterm trouble, a credit downgrade, and all hell breaks loose. This has happened before and it will again if they don't address their debt when they should. Gundlach has been interviewed many times. They are long and boring. I'll find a good one for you to listen to. His funds may be the best way to play it. Just a place I may throw $100K in the future. I'll stay diversified.