Markets: I'm Short Junk Bonds

I'm short junk bonds. The yield spread between junk bonds and AAA bonds now is very, very narrow (never been this narrow) and when interest rates go higher and they have already started going higher, junk bonds are going to get killed.

Related trading instruments: 

• SPDR Barclays Capital High Yield Bond ETF (JNK) 
• iShares iBoxx $ High Yid Corp Bond (ETF) (HYG) 

Markets: Junk Bonds, Gold

I am short junk bonds in the United States. I am not adding at the moment. But if the opportunity arises, if junk bonds go up a fair amount I know I will add to that position. And if gold collapses I will add to that position. (SPDR Barclays Capital High Yield Bond ETF (JNK), iShares iBoxx $ High Yid Corp Bond (ETF) (HYG), SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

The Bond Bull Market: Coming To An End?

The bond bull market has been going on for 35 years. It started, the bottom was on September 1981, so it has been going on for over 34 years now. And yes, it is coming to an end. You may have government bonds go higher for a while just as panic takes place. I am short junk bonds in the United States and you are right, they are going down now, some more than others obviously.

We are making a top in interest rates but that does not mean that if and when the Federal Reserve panics again that interest rates will not go down some more. But we are making the top. Not sure about sovereigns because I expect so much panic that many people will pile into them as they are piling into the U.S. Dollar. (iShares iBoxx $ High Yid Corp Bond (ETF) (HYG), SPDR Barclays Capital High Yield Bond ETF (JNK))

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

Global Markets: Watching, Looking For Opportunities

I am not really putting my money anywhere. I am mainly watching. I am short U.S. stocks and I am long China. I am looking for maybe some more shorts in junk bonds, I would like to short more junk bonds in the United States. And I am looking for opportunities.

(SPDR Barclays Capital High Yield Bond ETF (JNK), iShares iBoxx $ High Yid Corp Bond (ETF) (HYG), SPDR S&P 500 ETF Trust (SPY), iShares FTSE/Xinhua China 25 Index ETF (FXI))

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.