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off topic, surprised no one has mentioned the fact brazil and india's yield curves are now inverted
Werent you listening?
The BRICs are invincible, bulletproof, beyond reproach even.
Get with the program man.
Ha ha. Yep, and America will look just like them soon enough.
I read an article on that topic somewhere last week. Global depression dead ahead!
yah...but what does it all mean ?!?!?
hard to say. this article feels a bit premature. hi yield has had a bit of a sell off, is on a PSAR sell, and has a nice rounded top building but there's no serious sell off in what is a long term up trend.
other bonds like international corporate are ok
investment grade corp are OK
US treasuries (10yr) are still solid.
lots of folks like to pick tops and this may be a top as QE2 winds down and interest rates start to rise. Id rather wait for some kind of confirmation from the market itself.
of course,,, in the end,,, in the long term,, this interest rate manipulation by the FED and Planet Washington is rediculous, unsustainable, and an insult to we on mainstreet. but that is another subject.
As per the indicators on those charts there are some mighty bearish divergences building:
spot on. let's see if the divergences play out....
Not a bad plan, might be some reward (losing less?) for staying ahead of the oncoming onslaught of financial repression.
Hmmm, there was a Yahoo Finance front page article this morning saying it was time to add junk bonds. (It's off the front page now and I am too lazy to look for it.)
And go into what , 2yr notes at .35%?
for what its worth, you would have saved over 1/2% or more than one month's worth of interest on hyg.
I agree with illiquidity and deflation/inflation reduction until QE3.
More shocks into the productive sectors with price dislocation.
High interest rates and excessive debt (non-recognized losses) are still sucking up all liquidity.
I cut high yield after 2009 after a 50% gain. I mean holy crap, take your gains and move on...into cash or gold.
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