Ow! High Yields feel the pain
There is lots of reason to believe there is support at 1250. But downside risks continue to add up. Commodities continue to break down, but check out the ugliness in high yielding junk bonds and “preferred” shares today! Brutal selloffs in HYG, JNK and PFF!
This doesn’t bode well.
The headlines and sentiment seems so bearish that it feels like we should bounce soon… but breakdowns in high yield and commodities don’t bode well. And if you remember 2008, it felt like “we should bounce” all through the fall as we fell off the cliff.