High yield bond prices have become far more reasonable after the recent selloff, said Tim Palmer, portfolio manager for the Nuveen Strategic Income Fund. Palmer added that investors need to be selective about their purchases even though so-called junk bonds are less expensive now. He said he is finding the best values in the retail, automotive and energy sectors. Meanwhile, Palmer recommended that investors avoid pricey and risky European bonds despite increased ECB bond-buying in favor of emerging market plays like Mexico where political and economic reforms are taking hold.
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