This post is about contrarian thought. i have been following a financial TV show called 财经郎眼 for some time, in a recent episode aired in late March, professor Lang Xianping predicted that corporate bond market will crash in 2016 just like mortgage backed security in 2008, hence asking people to avoid investing in bond this year, I am taking a different opinion because of these 2 facts:
1. Although MBS crashed in 2008, in that same year, overall bond market got 8%+ return, how to explain that?
2. Many bond funds, PIMCO and Prudential etc have formed ABC patterns recently and just broken above C point which are bullish signs.
Disclosure: I am invested in Prudential Total Return Bond Fund (PDBAX)