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Tag Archives: VWEHX

DUMP YOUR JUNK

In our July issue (p. 11), I said you should close out your junk bond mutual funds if they didn’t surmount their 200-day moving averages by July 16. It now looks as if that isn’t going to happen. You have my blessing to sell Vanguard High-Yield Corporate (VWEHX), Strong High-Yield Bond (STHYX) and any other junk-bond funds you may own, effective immediately.

WHADDAYA MAKE OF JUNK?

Junk bonds have been screaming lately. Since the turn of the year, our recommended junk fund, Vanguard High Yield Corporate (VWEHX) has pumped out a total return of more than 8%. Some of the more aggressive junk funds are up 10% and even 11%. It’s the best run junk bonds have had since the early 1990s.