From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
We’re beginning to see signs that risk-on behavior is re-entering the market.
Commodities are ripping in the face of a rising dollar.
Cyclical stocks are back in gear as the S&P 500 High Beta ETF $SPHB posts higher highs and higher lows relative to its low-volatility alternative $SPLV.
Meanwhile, classic risk-appetite barometer AUD/JPY sliced through a critical level of former support-turned-resistance earlier this week.
All of these point to an increasing risk-on environment.
But what does the bond market have to say about investor positioning toward risk?
Let’s look at a couple credit spreads that speak to investors’ willingness to incur risk. [Read more…]