Still, he says there is a bright side to the coming washout in junk bonds.
"The good news is that the selloff will create one of the greatest buying opportunities of a lifetime in the not too distant future," Blumenthal says.
"Remember the 20% yields on high-yield bonds in 2008? My 2 cents is that the coming opportunity will be even better," he says.
Tactical trend analysis allows investors to identify the primary movements in high-yield bonds, Blumenthal says.
His strategy is to stay invested during the up-trending cycles and shorten maturities when the trend turns down. In other words, buy the iShares iBoxx High Yield Corporate Bond ETF (HYG) or the SPDR Barclays High Yield Bond ETF (JNK) when trends are turning up. He identifies an up-trend as when the 13-week exponential moving average for either exchange-traded fund is above the 34-week exponential moving average.
The HYG, which yields 5.3%, and the JNK, which yields 5.8%, are both up slightly more than 1% so far this year. Both ETFs fell hard in the fourth quarter last year due to the collapse in oil prices and its impact on energy issues. Meanwhile, investors should switch to a short-term bond ETF such as SPDR Barclays 1-3 Month T-Bill ETF (BIL) when trends turns negative, Blumenthal says.