The Market’s Risk Appetite is Growing
Hey, it’s Ross Givens here with the Chart of the Day. Junk bonds can be a key signal for market sentiment. When investors are willing to take on more risk in these high-yield bonds, it usually means confidence is rising. Today’s chart shows how a broad junk bond index has been tracking alongside the stock market, but now it’s breaking out of the range it’s been stuck in all year. This suggests that risk appetite is increasing. If you know how to read these signs, you can position yourself to profit as the market shifts. I explain more in today’s Insight of the Day.