I remember the headlines so clearly from 2007 as the high-yield bond market started to hiccup. The rest of the bond market started to hit rough patches in the summer of 2007 and that was my signal to convert my entire portfolio to cash. I preserved my wealth and I have stayed very liquid since then.
I laugh at stupid hedge fund managers who are chasing this action. If they all pile in even harder then my eventual wealth will be even greater once I pick over their assets when they're in bankruptcy. Come on, hedgies, don't let me down now. Show me how dumb you are by throwing your client's money into junk bonds at the height of another credit bubble.