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From the summer lows (June 2012) to May of 2013, Junk Bond ETF (JNK) and the S&P 500 moved higher together (green shaded area above), which if history is a good guide, was a healthy sign.
Since May of this year, junk bonds have been creating a series of lower highs, while the S&P 500 has moved higher.
Joe Friday…If history is a good guide, the relative weakness of junk bonds compared to the S&P 500 is sending a concerning message about stock prices in the future!
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