Back in 2007, high yield bonds broke support and the long bond broke resistance, at the same time. What followed in the stock market? A rather sizeable decline.
Now for the first time since 2007, high yields are breaking support and government bonds are breaking resistance, at the same time!!!
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If history is any guide, this breakout/breakdown suggests equities could struggle in the near future and even longer-term monies/401k investors, should consider harvesting values, as they are within a few percent of the highs for the year!