With stocks selling off this quarter, the bears are back.
Could you imagine still telling yourself that the rally we got in equities over the past year was a bear market?
What kind of serial killer thinks like that?
A 3-5% correction in some of the major Indexes can cause people to lose their minds.
Heck, you may be wondering yourself if this is the beginning of a huge move lower for stock prices. I certainly am.
Remember, every big move starts with a small one. But not every small move turns into a big one.
That’s where Credit Spreads come in. If there is real stress in the market, you’re going to see it in credit.
But as stock prices corrected this month, Credit Spreads only got more narrow.
Here’s an easy way to view that, comparing the prices of High Yield Bonds vs US Treasury Bonds: [Read more…]