January 15, 2020
Even as we write this post, the US Stock Market continues to push higher as global traders and investors pour capital into the continued US rally. The strong US Dollar continued to attract capital from around the globe and with fresh earning about to hit from Q4 2019, investors are expecting another round of solid income and earnings growth.
Yet, underlying all of this is the undercurrent of shifting capital into safe-havens like precious metals, Cryptos, and under-valued foreign markets. This shift started to happen late in Q4 2019 and accelerated early in 2019.
HYG – High Yield Corporate Bonds Daily Chart
One of our favorite measures of extreme bullishness is the scope of capital/trend pouring into High Yield Corporate Bonds. This chart below highlights the scale