For the old school types who believe that the credit market guys are more rigorous and know better than their younger, dumber cousins in equities, again consider the weakness in high yield corporate paper and junk.
We have been thwacking their derivative ETF’s for a while now, and the persistent weakness.
On the updated daily charts, below, note the mini-crashes of late, with nary a day in the green for weeks on end.
Even this morning, with a gap lower in equities being dipped, and GPRO trading in its own planet squeezing shorts into another galaxy, they remain red.
I am flat equities here, focused on a natural gas long.
But if we see stocks roll back over this afternoon I will have more conviction shorting again given the real weakness in high yield corporates and junk.
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Bond guys are much smarter than equity guys. Take it from an ex-bond salesman.
Really tough to stick to the diversified portfolio idea when i read this.
what makes “bond” guys so much smarter?
Because of the risk of a loss of principal in high yield corporates and junk. So they tend to be more rigorous and have to be. At least that is the old axiom.
^^
What chess said. Plus they really are just smarter but tend to be grumpy and down in the dumps. Thats why I left the business and went to equities. They are dreamers and optimists.
credit investors also receive private information that public equity investors are not privy to
That doesn’t hurt either!