As an Amazon Associate I earn from qualifying purchases from amazon.com

Is Junk Bonds (JNK) Poor Performance A Red Flag For Investors?


2021 has been a great year for equity investors.

The Nasdaq 100 and S&P 500 ETFs are up between 20 and 25 percent on the year!

But while it’s felt like a risk-on kinda year, there’s been one missing ingredient: Junk Bonds.

Something isn’t quite right…

In today’s chart, we look at the year-to-date performance of key stock market indices versus the popular Junk Bond ETF (JNK). As you can see, Junk bonds are badly lagging the broader market.

Typically, junk bonds are a strong performer in a “risk-on” environment for investors. So perhaps the stock market isn’t quite as stable here as thought… and maybe a little mean reversion is coming around the bend. Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

 




Source link

We will be happy to hear your thoughts

Leave a reply

Backup Investor
Logo
Enable registration in settings - general
Compare items
  • Total (0)
Compare
0