Wells Fargo: Buy High Yield on Pullback, Avoid Munis & Treasuries

High yield corporate bonds have retreated to levels where they should be aggressively purchased, said Jim Kochan, Chief Fixed Income Strategist at Wells Fargo Funds Management. Kochan added that investors should take caution before adding municipal bonds and Treasuries to their portfolios because they look expensive. He said rates will likely move higher due to a healthy US economy and a Federal Reserve that will likely stand pat on policy until the middle of 2015. Finally, Kochan said investors should steer clear of European bonds because the yields are too low and the economic fundamentals of the Eurozone are poor.