So here we go again, the monthly price tug of war that tends to hit my junk bond funds. The PImco High Income Fund (PHK) is off about 14% from it's recent high of $8.93 set on Monday December 7th. This tends to happen every time the Fed threatens to increase rates, which these days is pretty much every day, so who knows, maybe they'll do it, maybe they won't. But how much will the Fed tighten here, 25 basis points? 50? Nobody is anticipating a huge tightening, and although things are going well out there in job growth land, but they're not "Oh my gosh look at all these jobs" kind of optimism. Maximum pessimism then? Well no, but it's bad enough to make it worth doing. So buy on Monday, the day before the Fed meeting if this drop is still in progress. A 1% hike in interest rates makes the prices of bonds drop 10%. We're facing a max of one half a % maybe, and the price is already down this much. Buy on the dip, and wait to see what the Fed says. Don't wait until after the announcement because then the price will have already shot up to whatever is rational. It's irrational right now, so buy right now. If it pops back up after the announcement, sell some and don't feel bad about it. You are catching a 15.7% yield at this price, just how much better do you expect this deal to get?