The Junk Scare

Check out the recent performance of the High-Yield bond ETF ($HYG). If you look at the right scale, it’s really not that big of a move, but it’s plenty big compared with the junk bond market’s recent history.

So why are people fleeing junk? I suspect it’s part of a larger pattern where investors are clamoring for safer assets. That’s understandable given the news out of places like Syria, Argentina and Ukraine. What’s also interesting is that Industrial stocks have badly lagged the market over the past two months while Technology has been a leader.

Posted by Eddy Elfenbein on August 4th, 2014 at 2:10 pm

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