2021 has been an amazing 12 months for fairness traders.
The Nasdaq 100 and S&P 500 ETFs are up between 20 and 25 p.c on the 12 months!
However whereas it’s felt like a risk-on kinda 12 months, there’s been one lacking ingredient: Junk Bonds.
One thing isn’t fairly proper…
In right this moment’s chart, we have a look at the year-to-date efficiency of key inventory market indices versus the favored Junk Bond ETF (JNK). As you may see, Junk bonds are badly lagging the broader market.
Sometimes, junk bonds are a robust performer in a “risk-on” atmosphere for traders. So maybe the inventory market isn’t fairly as steady right here as thought… and possibly just a little imply reversion is coming across the bend. Keep tuned!
This text was first written for See It Markets.com. To see the unique publish CLICK HERE.