Junk Bonds showing risk appetite still positive

Junk bonds are the best indicator for risk appetite. See the relative chart of HYG vs TLT.

In the past a divergence of this ratio with SPY has been an early indicator of a fall in equities ahead. Currently there is no such indication. It is rising in tandem with the SPY. This indicates the bull market in equities is still alive and healthy. When this changes, we will alert you. Till then it is safe to be long in equities.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: