Why Avoid Junk Bonds?

Further to a previous report on junk bonds: The media helps see to it that the public gets a poor image of lesser-grade corporate bonds, which have gotten the unfortunate status over the years as “junk,” something to be avoided.

Actually, the wise use of these higher-yielding bonds can be helpful, provided you are familiar with the principle of duration, that I have often discussed in these pages. (See the Earl J. Weinreb NewsHole(r) Commentaries.)