But if your holding period is less than three years, and you don’t have high tolerance for risk, high-yield bond funds probably weren’t an ideal choice for your purposes in the first place. Therefore selling now at decent prices could be a valid consideration.
If you currently hold individual bond securities, it’s likely that they serve an income purpose in your portfolio and selling them now probably doesn’t make sense unless you believe the issuing company is in danger of default before your junk bonds mature.
The best perspective is to remain focused on the big picture of your savings and investment goals and to not allow the short-term whims of the market to deter you from your plans and strategies.
Kent Thune is the owner of an investment advisory firm in Hilton Head Island, S.C. He personally does not hold any of the aforementioned securities. Under no circumstances does this information represent a recommendation to buy or sell securities.
This article is brought to you courtesy of Kent Thune from Wyatt Research.