When risky assets go down sharply in price, one should certainly sit up and take notice. Financial Times reports that there has been a record US$ 4.63 bn pullout from the US junk bond funds this week. And more could be on the way as selling in bonds usually gives rise to more selling. What possibly could have led to such a step in a market that was until recently, one of the hottest areas on the fixed income side of things? It is the growing uncertainty if few experts are to be believed. The market is lacking clarity and it is lacking consensus and in such an environment, people usually find it safer to move out of risky assets. The bullishness about the US economy has certainly seen its shine come off a bit in recent times. And thus worries are growing that in case the US economy does not recover, the high yield or the junk bond segment is certainly not the place to be. Especially in light of the returns it is offering against the rising risk of defaults. The scenario yet again highlights the importance of staying invested in quality assets at all times. And keeping the extra money in cash if quality is not priced attractively enough.