Junk bonds have not yet cracked as speculation continues
The stock market is probably not going to crack until the ultimate sign of rampant speculation cracks. That would be Junk bonds and especially their ratios to supposed quality bonds like Treasury and Investment Grade.
Here is nominal Junk (HYG). The uptrend is intact. Note that on these charts dividends are not rolled in. If they were HYG would be shown flying around all-time highs.
Junk/Treasury remains in the post-March uptrend it has been in since the March terror.
Junk/IG shows the market still in speculation mode.
When these 3 Amigos crack the market will be in trouble. If/as they remain intact however, it’s onward with the speculative frenzy in stocks.
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