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RE: Morgan Stanley WARNS Of Coming Recession & Stock CRASH! - Sells All Junk Bonds!
I think you don't understand the varying levels of bonds, they are selling off the high rate yield bonds , which as much riskier, the FA probably suggested low yield bonds
I understand there are different risk levels that come to bonds. But in this market, all bonds are risky. You've heard of the "everything bubble?" Well bonds is the biggest piece to that bubble. Bonds have been in this bubble for 30 years now. Plus Bonds are literally monetized debt by the federal government as a promise that they will pay you back. We are having a debt crisis right now in the United States and the amount of money that has been borrowed is an impossible amount to pay back. I mean why would any sane person purchase debt of a government that's been running deficit spending for decades?