part 2: Are junk stocks really dogs? by Bill Dunbar
This is the second part of an article by the same title published in a previous issue of Stocks &
Commodities. In the first half, my question was related to investment in junk stocks near the peak of the
market cycle. The question was: what is the risk in a portfolio of junks under such circumstances? The
answer was: on the average, less risk than in a portfolio of respectable stocks. The part that was missing
was what the relative gains were if the stock had been purchased just prior to a healthy bull market. Since
it required a different selection of stocks, I deferred it till now.