At this crisis point in history - what could possibly create these rare and extraordinary gains?

An Arizona multi-millionaire's revolutionary initiative is 
helping average Americans  find quick and lasting stock market success.

Since the Coronavirus came into our lives this slice of the stock market has given ordinary people the chance to multiply their money by 96% in 21 days on JP Morgan.


Trading  | November 9, 2017

Something has changed…

For months high yield bond yields have been compressed alongside rising stock prices as the flood of global liquidity from central banks.

ECB buying has driven European junk bond yields below those of US Treasuries and in turn that has pressured global high yield risk lower – despite a rise in leverage to record highs.

However, the last two weeks have seen a big shift in flows as investors have fled high yield funds and pushed into investment grade and Treasuries.

 

And that has led to a plunge in high yield bond prices…

 

Not playing along with stocks…

And this time it’s not some idiosyncratic sector-specific selling as we saw in Energy HY previously.

And a dramatic decoupling between equity and credit risk-

 

This is the first major divergence between credit and equity markets since early 2016’s global growth scare.

*  *  *
Bonus chart: It’s not just credit risk that has decoupled from stocks, equity protection costs have too…


A revolutionary initiative is helping average Americans find quick and lasting stock market success.

275% in one week on XLF - an index fund for the financial sector. Even 583%, in 7 days on XHB… an ETF of homebuilding companies in the S&P 500. 


{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

You might also like


Stocks | May 14

Stocks | May 14

Economy | May 13

Stocks | May 13