Junk Bond Guru Looking to Stocks

Top Fidelity junk-bond fund manager Mark Notkin is moving away from bonds and into stocks, saying that stocks are offering better values. Notkin’s fund can hold up to 20% of its assets in stocks, and had 17% in stocks at the end of the third quarter, Bloomberg reports. That’s up from 5% in April 2009. “If I find opportunities, don’t be surprised if it gets to 20%,” Notkin said. “Compared to high yield, equity is very cheap.” He noted that the earnings yield on the S&P 500 was at about 6.9% in the second quarter, which Bloomberg says is the […]