This class of stocks will get destroyed in a market correction

Just like the government’s “cash for clunkers” program, investors are ready to cash in junk stock holdings for sounder equities, analysts say.

The stock market is up 57 percent since March 9, led by so-called junk stocks — or badly beaten names with hazy growth prospects. Many of have been in the financial sector, which has lifted the S&P Financial index by 146 percent since the March lows.

But few believe the junk rally can be sustained. Analysts say the mantle will need to be passed from financials and other high fliers to underperformers that actually have stronger growth potential in the coming quarters.

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