I am honored when my work gets picked up on other sites, I was especially humbled when Josh Brown shared one of my charts on his awesome site, “The Reformed Broker.”   Josh shared the chart below with the title..”A warning from the Debts of Hell.” (see post here)

The article/chart discussed that a “breakdown in high yield prices and a breakout in the 30-year bond was taking place“… the last time this happened, which was  back in 2007, stocks declined a rather large percentage!

The Wall Street Journal (WSJ) happened to pick up the artilce, questioning if investors should be concerned due to this type of analysis. (see post here).

The chart below highlighted that it was time to protect your assests, especially your 401k assets…NOW IS THE TIME!


Below is an update to the 6/1 chart…


In less than 60 days after the chart was produced (per the breakdown in high yields and the breakout in Govt bonds), the 500 index declined almost 20% in a couple of weeks, one of the sharper declines in U.S. History.  This chart reflects that you can use the price action of bonds to help you construct portfolios, per when to increase or decrease overall equity exposure.

These two types of bonds suggested when to reduced risk…stay tuned to when they suggest to increase risk exposure again! 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past