Chart of the Day
Today’s chart of the day is the high-yield or “junk” bond spread, which shows the percentage difference between high-yield bond (corporate bonds that are beneath investment grade) yields and investment grade corporate bonds or U.S. Treasury bonds. In central bank-manipulated environments like we’ve had for several decades, very low high-yield bond spreads indicate the formation of a dangerous economic bubble. The high-yield spread was unusually low during the late-1990s Dot-com bubble and mid-2000s housing bubble, as well as during the current “Everything Bubble” that I have been warning about. Click here to read the full article about how high-yield bond spreads reveal dangerous investor complacency.
You can also watch my video on this topic:
Here is your weekend reading list.
Chart Predicts Every Market Crash in History (Mike “Mish” Shedlock)
The S&P Just Broke Below Its 100-Day Average (Bloomberg)
Bull Market Poise Gone Missing From S&P 500 as Bad Days Pile Up (Bloomberg)
Stock-market volatility is back, and investors need to get used to it (MarketWatch)
Treasury yields lower as Powell plays down wage pressures (Marketwatch)
Will The Bond Bears Take A Hit? (Forbes)
Muni Market Headed for Worst Start of a Year Since 2008 Crisis (Bloomberg)
S&P 500 Hits Tech-Heavy Milestone Last Seen With Dot-Com Bubble (Bloomberg)
Tech cracks are beginning to appear (Sven Henrich)
Economy
The End of (Artificial) Stability (Daily Reckoning)
Bill Gates says it’s ‘a certainty’ that we will have another financial crisis similar to 2008 (Business Insider)
Larry Summers Warns Next U.S. Recession Could Outlast Previous One (Bloomberg)
Global Growth Narrative Stumbles As Nomura Warns “Best May Now Be Behind Us” (ZeroHedge)
Foolishness of Trump’s Steel Tariffs in One Image (Mike “Mish” Shedlock)
Trump’s Tariffs Deal a Blow to Already-Shrinking U.S. Auto Sales (Bloomberg)
A Great Big Warning Sign (Peter Schiff)
Tudor Jones says US will ‘regret’ the tax cut (CNBC.com)
Is The U.S. Losing Its Tech Edge? Trade Data Hints Yes (Forbes)
Debt Matters (Sven Henrich)
Inflation is in the Rear-View Mirror (Mike “Mish” Shedlock)
U.S. Pending Home Sales Unexpectedly Dive to Lowest Level in 3.5 Years (Mike “Mish” Shedlock)
Senate Republicans Cast Doubt on Trump’s Infrastructure Plan (Bloomberg)
US Gross National Debt Spikes $1 Trillion in Less Than 6 Months (Wolf Richter)
The Real Reason Behind The U.S. Student Debt Problem (Forbes)
Earlier on Real Investment Advice
Technically Speaking: It Bears Repeating (Lance Roberts)
Dancing In The Dark (Doug Kass)
Corporate QE: What It Is & Isn’t (Peter Cook)
Quick Take: How Do You Compare? (Richard Rosso)
Junk Bond Spreads Reveal Complacency (Jesse Colombo)
It’s Always 20/20 In The Rear-View Mirror – Part Deux (Doug Kass)
Stocks vs. Bonds & What To Own Over The Next Decade (Michael Lebowitz)
The Dumbest Bet In Finance (John Coumarianos)
The End Of Bear Markets (Lance Roberts)
Common Trading Mistakes Investors Must Avoid (Lance Roberts)
Why Is The ‘Smart Money’ Bearish On Oil & Yields? (Jesse Colombo)
“Rising Rates Will Kills The Stock Market Rally!” – Is That True? (Peter Cook)
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
Customer Relationship Summary (Form CRS)
2018/03/02
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