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!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
This is neither a strategy nor telling you to buy or sell $HYG. It is simply adding to our knowledge pool & decision making process.