Classic Example of ETF Market Generated Information - Junk Bond Investors

From ETFreplay blog
October 17, 2016 - 3:30pm

Every recession has something in common:  investors flee junk bonds.   You do NOT have to predict this, you only need to monitor it. Junk bond investors got worried in late 2014 and much of 2015 -- and the stock market went effectively nowhere during that time (while High-Quality and Low Volatility segments outperformed strongly). Most of 2016 has seen a decent bull market in junk bonds.   Since fixed-income investors are very sensitive to their income actually being fixed --- and not variable,  this group of investors is a very useful group to track.  



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