Riding The Gravy Train: Junk-To-Treasuries Spread Widest in Over Two Years

Riding The Gravy Train

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Thursday, November 22, 2018

Junk-To-Treasuries Spread Widest in Over Two Years


In early October the spread between junk bonds and treasuries was the smallest in over 11 years; since the exact day of the 2007 market top, after which stocks plunged massively the following 20 months.

The spread is now the largest it's been in over 2 years, a remarkable reversal in just 6 weeks.

That's very bullish for our 6x Junk Bond Short position, and very bearish for stocks and other hyperinflated assets. 



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