Thursday, September 2, 2021


Is Junk Bonds (JNK) Poor Efficiency A Crimson Flag For Traders?

2021 has been an amazing 12 months for fairness traders. The Nasdaq 100 and S&P 500 ETFs are up between…

By Staff , in Gold , at September 2, 2021


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.

 




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