Gary Smith

Has anyone heard from Gary Smith lately? I was wondering how he was doing? Thanks

He posted just last week. Couldn't find it but roughly, he associated tightening of junk bond spreads and sharp rally in junk as harbinger of continued rally in stocks.

http://messages.fina...F...8&frt=1#583


Hi Scott, been posting a lot on the Yahoo boards under the above handle and have been enjoying the rally in junk bonds amd other debt instruments. Since the Fed meeting in December junk bonds have had their greatest three week rally ever with this past Monday and Tuesday the greatest two day rally ever. I also hold an investment grade bond fund, preferred stock funds and bank/leveraged loan funds. I am about 72% in debt related funds, 14% in individual equities and 14% cash. I don't take anything for granted and this huge rally in the debt markets could all be a dream and a mirage, especially if there is another shoe to drop in the economic landscape. But for now will stick with what has been working. I think 2009 will be the year for *Yield*.

Credit markets freezing up is what exacerbated the freefall in stocks. Investment grade bonds have risen 25% since mid October. That rally then spread to junk bonds in mid December with many closed end junk funds up over 50% in just a few short weeks. Hopefully for the stock bulls the rally in the debt markets will next spread to stocks.

When/if the stock market heads back down I'll be watching how much the junk pulls back. If they hold up better than stocks, it should be a good sign to jump in. From what I hear 09 should have more debt defaults. So maybe not so smooth sailing yet.