Over the past 6 years, when the yield on high yield bonds (junk bonds) broke above resistance of bullish falling wedges, the S&P 500 ended up declining between 17% & 50%. Will it be different this time?
So asks Chris Krimble (http://blog.kimblechartingsolutions.com) in edited excerpts from his original post* entitled S&P 500 fell between 17% to 50% last times junk bonds did this!.
[The following article is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Kimble goes on to say in further edited excerpts:
The effective yield on high yield bonds (junk bonds) are at historical lows at this time breaking above resistance of a bullish falling wedge for the third time since 2007.
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Should we listen to the message coming from the yield breakout? Will it be different this time?
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://blog.kimblechartingsolutions.com/2013/06/sp-500-fell-between-17-to-50-last-times-junk-bonds-did-this/ (Check out our various services here)
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