High yield sectors have had a truly outstanding year in 2009. Junk (high yield) bond funds are up over 50%, from a time when their yields were at record levels (above 25%). Back then, risk was being punished, and risk aversion became the driving force for investors. The subsequent rally has reduced yields from dividends paid by junk bond funds to 10-12%, not too far above the 9% area they have yielded in the best of times.

Last week, Bill Gross, head of PIMCO, the world's largest owner of debt, said junk bonds had peaked. Junk bond funds sold off but have bounced back partially this week.