Hi Friends!

I hope the following will at the very least, provide another insight for you.

That is.. $iShares iBoxx $ High Yield Corporate Bond ETF(HYG)$

•$HYG = “High Yield Corporate Bond ETF”

Bonds aren’t traded by retail, they’re traded by large institutions.

Now, the term “high yield bond” simply means Junk Bond. (To me at least)

I believe we can all agree that large institutions are always first to receive crucial informations.

So why would institutions buy Junk Bonds?

Because when everything is going well, they want the high yields.

When they know things are gonna go south, they dump these “Junk Bonds”.

Institutions move their money out of these high risk junk bonds.

When that happens, it’s usually a signal that the US stock market is in for a beating.

Having said that, 1 signal isn’t enough for a conclusion. There’re other tickers to look out for i.e. $TLT $VIX $DXY

Furthermore, the current macro situation seems to be extremely uncertain.

I hope this piece of information comes in handy.

Cheers!