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  |  NOV 1986

Part 2: Are junk stocks really dogs? by Bill Dunbar

part 2: Are junk stocks really dogs? by Bill Dunbar This is the second part of an article by the same title published in a previous issue of Stocks & Commodities. In the first half, my question was related to investment in junk stocks near the peak of the market cycle. The question was: what is the risk in a portfolio of junks under such circumstances? The answer was: on the average, less risk than in a portfolio of respectable stocks. The part that was missing was what the relative gains were if the stock had been purchased just prior to a healthy bull market. Since it required a different selection of stocks, I deferred it till now.

by Bill Dunbar

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