US economy in general is starting to make me nervous.
Quite hard to diversify away though because that means missing out on AI boom and if the US shits the bed then chance are everything else gets sucked down with it
But yeah. I looked at how my pension funds are invested, and it's like 70% in the US. Even more than the sovereign wealth fund, which is apparently around 50% (if a quick AI search can be trusted).
Thing is, I'm not sure I will like the world where OpenAI and co. are as wildly successful as their valuation suggests either. So maybe I should invest in them, so that if it comes to pass, I at least have money?
> Thing is, I'm not sure I will like the world where OpenAI and co. are as wildly successful as their valuation suggests either. So maybe I should invest in them, so that if it comes to pass, I at least have money?
I think their current valuation isn't suggestive of a world that's going to change very much.
If investors were taking seriously the idea that this could be "it" with AI enabling even full automation — not superhuman AI, not even a fast learner, just AI that can fully automate everything we've currently got and not be limited to the subset of desk jobs that LLMs can do OK — it would allow the economy to double in size in whatever wall-clock time period it takes for the AI to gather enough training data by simply observing human workers doing the things the AI has not yet learned to do.
If self-driving cars are a good example in this regard, that observation time may quite large:
Current AI has not yet mastered full self-driving of cars in general conditions, despite all the cameras on cars gathering data about how all the other (human-driven) cars around them behave in real conditions. To take a somewhat arbitrary cut-off points for the sake of illustration, going from the 2007 DARPA Grand Challenge to today in self-driving cars, would suggest a growth of 3.9%/year.
Global GDP growth of 3.9%/year would be worth a much higher valuation than the AI companies are getting, and yet still be slow change.
I wouldn’t worry about being 70% of the US, especially since you have that 30% not in the US.
Many corporations are listed in the US even if they do a lot/most/all of their business overseas. Heck, there are Chinese companies that sell nothing in the USA listed on the US stock exchanges like XPENG.
Yeah, I really don't know what scenario leads to the US economy not dragging down the rest with it.
Is there an argument that other economies would recover better than the US, in the long term? But at that point, one could just diversify during/after the crash.
Unfortunately, that seems to be happening already.
YTD, US equities have underperformed most other equity indexes.
The argument is that a weakened dollar, political / economic unpredictability, politicization of the fed, and big spending bills are starting to weigh on investors’ minds.
Personally, I don’t think a dramatic “crash” is the most likely outcome. I think it would look more like a slow erosion of US growth and dominance compared with other economies.
I diversified away from the US to international equities VTI -> VSUX starting at the beginning of the year. My thesis is that trade is rearranging due to US trade policy. If you look at the S&P500, growth has been flat since 2022 for anything that isn't Big Tech AI bubble. Therefore, I believe that between go forward US economic policy and global trade reconfiguration, non US will outperform the US over the next five years.
I leave most of it in an Index fund. I rise and fall with everyone else.
It's either that, or I try to compete with professionals, that have tools I do not have, info I do not have, algos that I do not have, and the ability to cheat the market with dark pools, which I do not have.
As an alternative to diversification, I'm running fairly tight stops on my positions. If the market really shifts, or my positions shift, that'll trigger a sell, and then I reevaluate the positions and the market before buying back in.
You can hedge with PUTS, move into precious metals, put your money in CHF, etc. There are all kinds of ways of maneuvering financial turmoil (albeit, sometimes with non-productive assets), but it really depends on your risk outlook, and as we all know, we're bad at predicting the future.
Alas can't - employer prohibits any use of derivatives.
Plus my last adventure down that lane didn't go great. (Some big wins, some big losses and a realisation that I better leave things I don't fully understand alone - like the options greeks).
> US economy in general is starting to make me nervous.
There's a little restructuring going on, so it' bound to be a bit bumpy which would make some folks nervous, but you have nothing to fear. The end result will be a stronger economy than we've had in decades, and the entire world will be better for it.
>from what I've heard, seen and read in the last 6 months.
Except they've been saying that for the last 2-3 years.
I have lunch with a friend every 2-3 weeks, and he self-manages his retirement, and he's retired. It was ~2.5 years ago that he said "A lot of the financial news guys I follow say there's going to be a crash in the next 3-6 months."
At every lunch we've been following up on that, and it just hasn't crashed yet.
I'm not saying it won't, I'm not saying it's risky, but just getting out of the market is not an ideal solution either.
Cash is safe. Gold is at a record high for a reason. There are still some companies worth owning.
In general, the thing to look at is the level of liquidity in the market. The liquidity is there, but the problem is there's too much uncertainty for many companies to be able/willing to invest, so it mimics a lack of liquidity.
The dollar has really taken a beating though. It has fallen ~11% this year and is predicted to fall another 10% next year. If you're in cash, you're basically betting the market is going to fall over 20% between the beginning of 2025 and the end of 2026.
Cash is absolutely not safe. Between the fx risk and inflation risk out there, cash is losing purchasing power daily.
Gold is interesting because it was a hedge for a long time, but with the recent run up I wonder if it's entering meme territory. Now that it's moving, people are jumping into it.
Cash is worse than even the worst observed scenarios of stock market investing.
E.g., cash is worse than if you had bought your whole portfolio with the worst timing possible like right before the 2008 crash.
I calculated this out comparing typical savings account APY with S&P
500 and the break even recovery of the S&P account is 2013, with annualized returns at 7.4% for your investments versus 2% APY for cash. That means your cash account is less than half the size of your investment account by 2024. And this is the worst case scenario with a massive market crash and the entire portfolio purchased at the exact wrong time - very unlikely, most people invest continually over time.
The only purpose of cash is for immediate liquidity.
People who invest in the stock market expect large fluctuations including major market crashes. That risk is baked in to the expectation of long-term reward.
If you need to stabilize your portfolio to prepare to withdraw from it soon and preserve its value, talk to a professional if you don’t know what you’re doing. They probably won’t recommend 100% cash deposits unless you’re literally spending it all this year.
can someone explain what this means for the general economy? my understanding is that the spread widening is compared against the US treasury bill, and these junk bonds' prices are going down.
as the junk bond prices decreases and the demand for yield increases, this increases the cost of borrowing and can potentially create a ripple effect of defaults.
It's difficult to say with any certainty what it means for the general economy, but your understanding of what this is saying about the junk bonds themselves is basically correct.
Whether it leads to a lot of defaults depends on a lot of factors. A sell-off in bonds can really screw a company if it happens to have immediate financing needs at the time, but otherwise it doesn't really impact the company directly. Junk bonds are, as the name suggests, known to be risky assets, so they are generally the first to be sold when things get a bit choppy and investors decide to sit the market out for a bit to see how events unfold.
This seems like it is pretty clearly a response to the recent tariff escalation so, as with all the other tariff announcements, it will depend on whether the recent announcement is a change in policy or another negotiating tactic.
You also see a lot of headlines like "worst losses in six months!" "biggest sell-off since September!" but these are fairly short timeframes and a lot of this is just trying to make some news out of the usual market noise.
This doesn't mean a lot. People made bets on lower rates which drove money into junk. Those prices renormalized to levels seen over the past year.
In fact, lots of business had the opportunity to roll their debt over the past year, so bankruptcy in the medium term seems unlikely.
The broader question is why now and so quickly. In my view, people got way over their skis in rate-based trades which drove a lot of things higher including tech multiples. This likely why we also have the NASDAQ down 3.5% in a single session.
US Junk Bonds can be used as an early economic indicator. Potentially indicating downturns in GDP and increases in unemployment up to one year earlier than other indicators.
When Junk Bond yields are low, it suggests investor confidence is high (and a low risk of corporates defaulting). The article notes that yields are rising, this is understood to be a signal of economic uncertainty (i.e. greater chance of defaults/increased risk of investing.)
There are considerations to be made regarding about what caused the changes - in this case the presidents declaration of additional tariffs on China. Since this is an arbitrary decision, and not say the result of an economic trend, the certainty around the correlation is lower. Nevertheless the randomness of the actions are themselves a source of uncertainty, which too scares away investment.
Bond spreads widening reflect lenders' fear that borrowers will default. So what this means is that on average people think that the lowest class of borrowers (junk) are going to struggle to repay. That means it is more expensive for them to borrow, which is going to generally discourage those companies from investing in projects or starting new things which require debt finance. So you would expect the knock-on effect to be less activity in general.
The weaker companies experience the impacts of financial stress more quickly, and investors start to flee to safety.
Running an economy based on the whims of a decrepit old man and the weirdos he surrounds himself with introduces a lot of risk. It doesn’t mean that the end is nigh, but large money flows are going towards lower risk.
Barely surviving companies might die. And stop employing people, buying and selling... Thus they can then have at least short term effects on both up and downstream...
So in worst case enough triggers might result in larger collapse. Basically big enough issue anywhere not just in AI might bring rest down with it.
My slightly informed cynical opinion is that if a consensus existed for what this meant for the general economy, plenty of experts would be telling you. So, we don't know.
Feedback effects ("ripple effect" in your usage) are a genuine risk of economic systems, but by their nature they aren't predictable. You get the non-linear feedback we're all terrified of (a "crash") when some buffer or another runs dry: some notable demographic needs money, normally gets it from place X (for example: selling stock, repackaging and selling mortgage securities, raising a series B round, issuing corporate bonds, etc...) and suddenly X doesn't produce the same returns. So they need to do another one of those things, which drives that price down, which causes the demographics that depend on that resource to run dry, etc...
This is a metric for just one buffer: the amount of cash available to issuers of high interest bonds. Is that the tipping point? We don't know, and won't until it tips.
I used to be pretty into junk bonds during my MBA (I don't do this at all professionally, so YMMV with my commentary here), and I think, as usual, a lot of context would help with understanding what this could mean, which ajross described. In the most simple terms, as other have also mentioned, it's basically non-investment grade companies (and there are a lot of em - you'd be surprised at the names on the list) now have to pay more for money. This could mean that investors are worried and want more compensation for risk, which means that the reality of the economy is shakier. OTOH, it could mean that investors are being more realistic, and not letting risky companies just have cheaper money to make value destructive decisions could be a good sign of sanity in the markets, and thus (in theory) the economy. It's hard to know with a simple headline or article. Even if you dig into all the numbers and do all the reading, it's still hard to know since the world is really complex.
I look at this as a single data point amongst many re: how I end up assessing my feelings about the economy. Truth be told, I'm probably more concerned about what lots of news outlets are discussing - all the AI capex spend. Apparently there's more financing being negotiated with fewer restrictions on the debt, which tends to be a really bad sign of a bubble.
> The US junk bond rally came to a halt on Friday with the biggest one-day loss in six months, as the risk premium surged to near a four-month peak of 304 basis points. Yields climbed to 6.99%, the highest in more than two months.
> The losses accelerated after President Trump threatened to impose huge tariffs on imports from China and said he saw no reason to meet with Chinese President Xi Jinping, causing concerns about trade relations between the world’s two biggest economies.
> The weekly loss of 0.73% was also the biggest since April. The losses spanned across ratings amid the renewed tariff fears. Junk bond yields rose 15 basis on Friday and 31 basis for the week, the biggest increase in six months.
> CCC yields rose above 10% to a five-week high of 10.14% and spreads widened to a six-week high of 632 basis points. Spreads climbed 32 basis points on Friday, the most in one day since April. CCCs racked up a loss of 0.6% on Friday, the worst one-day loss in six months. CCCs closed the week with a loss of 1.05%, also the most in six months.
Yes, but there's also an indicator that the size of the losses is correlating to "size and sentiment of junk bonds", meaning, there may be a few too many building up. Ultimately, if equities seesaw enough, there can be some collapsing.
US economy in general is starting to make me nervous.
Quite hard to diversify away though because that means missing out on AI boom and if the US shits the bed then chance are everything else gets sucked down with it
Too big to fail, nation state edition?
But yeah. I looked at how my pension funds are invested, and it's like 70% in the US. Even more than the sovereign wealth fund, which is apparently around 50% (if a quick AI search can be trusted).
Thing is, I'm not sure I will like the world where OpenAI and co. are as wildly successful as their valuation suggests either. So maybe I should invest in them, so that if it comes to pass, I at least have money?
> if it comes to pass, I at least have money?
I bet 20 GBP that Brexit would happen for that reason. Ended up with around 100 GBP to drown my sorrows :(
> Thing is, I'm not sure I will like the world where OpenAI and co. are as wildly successful as their valuation suggests either. So maybe I should invest in them, so that if it comes to pass, I at least have money?
I think their current valuation isn't suggestive of a world that's going to change very much.
If investors were taking seriously the idea that this could be "it" with AI enabling even full automation — not superhuman AI, not even a fast learner, just AI that can fully automate everything we've currently got and not be limited to the subset of desk jobs that LLMs can do OK — it would allow the economy to double in size in whatever wall-clock time period it takes for the AI to gather enough training data by simply observing human workers doing the things the AI has not yet learned to do.
If self-driving cars are a good example in this regard, that observation time may quite large:
Current AI has not yet mastered full self-driving of cars in general conditions, despite all the cameras on cars gathering data about how all the other (human-driven) cars around them behave in real conditions. To take a somewhat arbitrary cut-off points for the sake of illustration, going from the 2007 DARPA Grand Challenge to today in self-driving cars, would suggest a growth of 3.9%/year.
Global GDP growth of 3.9%/year would be worth a much higher valuation than the AI companies are getting, and yet still be slow change.
6 replies →
You can't invest directly in OpenAI because it's privately held. Many investors have been putting their money into OpenAI's suppliers such as Nvidia.
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I wouldn’t worry about being 70% of the US, especially since you have that 30% not in the US.
Many corporations are listed in the US even if they do a lot/most/all of their business overseas. Heck, there are Chinese companies that sell nothing in the USA listed on the US stock exchanges like XPENG.
Yeah, I really don't know what scenario leads to the US economy not dragging down the rest with it.
Is there an argument that other economies would recover better than the US, in the long term? But at that point, one could just diversify during/after the crash.
Unfortunately, that seems to be happening already.
YTD, US equities have underperformed most other equity indexes.
The argument is that a weakened dollar, political / economic unpredictability, politicization of the fed, and big spending bills are starting to weigh on investors’ minds.
Personally, I don’t think a dramatic “crash” is the most likely outcome. I think it would look more like a slow erosion of US growth and dominance compared with other economies.
https://www.bloomberg.com/news/articles/2025-10-11/a-great-y...
11 replies →
Which economy would you bet on, though? To recover in the long-term. In my mind they all give me reason for pause for various reasons
1 reply →
Not investing advice.
I diversified away from the US to international equities VTI -> VSUX starting at the beginning of the year. My thesis is that trade is rearranging due to US trade policy. If you look at the S&P500, growth has been flat since 2022 for anything that isn't Big Tech AI bubble. Therefore, I believe that between go forward US economic policy and global trade reconfiguration, non US will outperform the US over the next five years.
4 replies →
> Quite hard to diversify away though because that means missing out on AI boom
I find it easier to live with lower/no gains than in constant FOMO
Yes, though a couple 100% lucky gains sure can accelerate the journey.
I leave most of it in an Index fund. I rise and fall with everyone else.
It's either that, or I try to compete with professionals, that have tools I do not have, info I do not have, algos that I do not have, and the ability to cheat the market with dark pools, which I do not have.
As an alternative to diversification, I'm running fairly tight stops on my positions. If the market really shifts, or my positions shift, that'll trigger a sell, and then I reevaluate the positions and the market before buying back in.
You can hedge with PUTS, move into precious metals, put your money in CHF, etc. There are all kinds of ways of maneuvering financial turmoil (albeit, sometimes with non-productive assets), but it really depends on your risk outlook, and as we all know, we're bad at predicting the future.
>You can hedge with PUTS
Alas can't - employer prohibits any use of derivatives.
Plus my last adventure down that lane didn't go great. (Some big wins, some big losses and a realisation that I better leave things I don't fully understand alone - like the options greeks).
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> US economy in general is starting to make me nervous.
There's a little restructuring going on, so it' bound to be a bit bumpy which would make some folks nervous, but you have nothing to fear. The end result will be a stronger economy than we've had in decades, and the entire world will be better for it.
I wish I had your confidence in this current plan leading to certain stronger economy
That seems airily optimistic. What is your factual basis for claiming this is true? What is your logic?
This AI Boom? https://www.scottishfinancialnews.com/articles/imf-and-bank-...
Avoiding it seems wise.
You'd be crazy not to be nervous about it from what I've heard, seen and read in the last 6 months.
>from what I've heard, seen and read in the last 6 months.
Except they've been saying that for the last 2-3 years.
I have lunch with a friend every 2-3 weeks, and he self-manages his retirement, and he's retired. It was ~2.5 years ago that he said "A lot of the financial news guys I follow say there's going to be a crash in the next 3-6 months."
At every lunch we've been following up on that, and it just hasn't crashed yet.
I'm not saying it won't, I'm not saying it's risky, but just getting out of the market is not an ideal solution either.
[flagged]
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Cash is safe. Gold is at a record high for a reason. There are still some companies worth owning.
In general, the thing to look at is the level of liquidity in the market. The liquidity is there, but the problem is there's too much uncertainty for many companies to be able/willing to invest, so it mimics a lack of liquidity.
The dollar has really taken a beating though. It has fallen ~11% this year and is predicted to fall another 10% next year. If you're in cash, you're basically betting the market is going to fall over 20% between the beginning of 2025 and the end of 2026.
Cash is absolutely not safe. Between the fx risk and inflation risk out there, cash is losing purchasing power daily.
Gold is interesting because it was a hedge for a long time, but with the recent run up I wonder if it's entering meme territory. Now that it's moving, people are jumping into it.
3 replies →
Gold is at a record high for a reason.
Generally, ‘this asset is at a record high’ is not a reason to get into it.
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Cash is safe only if you ignore inflation or foreign exchange.
Don’t spread this kind of financial illiteracy.
Cash is worse than even the worst observed scenarios of stock market investing.
E.g., cash is worse than if you had bought your whole portfolio with the worst timing possible like right before the 2008 crash.
I calculated this out comparing typical savings account APY with S&P 500 and the break even recovery of the S&P account is 2013, with annualized returns at 7.4% for your investments versus 2% APY for cash. That means your cash account is less than half the size of your investment account by 2024. And this is the worst case scenario with a massive market crash and the entire portfolio purchased at the exact wrong time - very unlikely, most people invest continually over time.
The only purpose of cash is for immediate liquidity.
People who invest in the stock market expect large fluctuations including major market crashes. That risk is baked in to the expectation of long-term reward.
If you need to stabilize your portfolio to prepare to withdraw from it soon and preserve its value, talk to a professional if you don’t know what you’re doing. They probably won’t recommend 100% cash deposits unless you’re literally spending it all this year.
can someone explain what this means for the general economy? my understanding is that the spread widening is compared against the US treasury bill, and these junk bonds' prices are going down.
as the junk bond prices decreases and the demand for yield increases, this increases the cost of borrowing and can potentially create a ripple effect of defaults.
recent cracks where these these companies issued junk bonds include First Brands, Tricolor, and Saks: https://www.bloomberg.com/news/features/2025-10-12/first-bra...
It's difficult to say with any certainty what it means for the general economy, but your understanding of what this is saying about the junk bonds themselves is basically correct.
Whether it leads to a lot of defaults depends on a lot of factors. A sell-off in bonds can really screw a company if it happens to have immediate financing needs at the time, but otherwise it doesn't really impact the company directly. Junk bonds are, as the name suggests, known to be risky assets, so they are generally the first to be sold when things get a bit choppy and investors decide to sit the market out for a bit to see how events unfold.
This seems like it is pretty clearly a response to the recent tariff escalation so, as with all the other tariff announcements, it will depend on whether the recent announcement is a change in policy or another negotiating tactic.
You also see a lot of headlines like "worst losses in six months!" "biggest sell-off since September!" but these are fairly short timeframes and a lot of this is just trying to make some news out of the usual market noise.
This doesn't mean a lot. People made bets on lower rates which drove money into junk. Those prices renormalized to levels seen over the past year.
In fact, lots of business had the opportunity to roll their debt over the past year, so bankruptcy in the medium term seems unlikely.
The broader question is why now and so quickly. In my view, people got way over their skis in rate-based trades which drove a lot of things higher including tech multiples. This likely why we also have the NASDAQ down 3.5% in a single session.
[0]: https://www.tradingview.com/chart/?symbol=AMEX%3AJNK
US Junk Bonds can be used as an early economic indicator. Potentially indicating downturns in GDP and increases in unemployment up to one year earlier than other indicators.
When Junk Bond yields are low, it suggests investor confidence is high (and a low risk of corporates defaulting). The article notes that yields are rising, this is understood to be a signal of economic uncertainty (i.e. greater chance of defaults/increased risk of investing.)
There are considerations to be made regarding about what caused the changes - in this case the presidents declaration of additional tariffs on China. Since this is an arbitrary decision, and not say the result of an economic trend, the certainty around the correlation is lower. Nevertheless the randomness of the actions are themselves a source of uncertainty, which too scares away investment.
Bond spreads widening reflect lenders' fear that borrowers will default. So what this means is that on average people think that the lowest class of borrowers (junk) are going to struggle to repay. That means it is more expensive for them to borrow, which is going to generally discourage those companies from investing in projects or starting new things which require debt finance. So you would expect the knock-on effect to be less activity in general.
The weaker companies experience the impacts of financial stress more quickly, and investors start to flee to safety.
Running an economy based on the whims of a decrepit old man and the weirdos he surrounds himself with introduces a lot of risk. It doesn’t mean that the end is nigh, but large money flows are going towards lower risk.
Barely surviving companies might die. And stop employing people, buying and selling... Thus they can then have at least short term effects on both up and downstream...
So in worst case enough triggers might result in larger collapse. Basically big enough issue anywhere not just in AI might bring rest down with it.
My slightly informed cynical opinion is that if a consensus existed for what this meant for the general economy, plenty of experts would be telling you. So, we don't know.
Feedback effects ("ripple effect" in your usage) are a genuine risk of economic systems, but by their nature they aren't predictable. You get the non-linear feedback we're all terrified of (a "crash") when some buffer or another runs dry: some notable demographic needs money, normally gets it from place X (for example: selling stock, repackaging and selling mortgage securities, raising a series B round, issuing corporate bonds, etc...) and suddenly X doesn't produce the same returns. So they need to do another one of those things, which drives that price down, which causes the demographics that depend on that resource to run dry, etc...
This is a metric for just one buffer: the amount of cash available to issuers of high interest bonds. Is that the tipping point? We don't know, and won't until it tips.
Great comment :)
I used to be pretty into junk bonds during my MBA (I don't do this at all professionally, so YMMV with my commentary here), and I think, as usual, a lot of context would help with understanding what this could mean, which ajross described. In the most simple terms, as other have also mentioned, it's basically non-investment grade companies (and there are a lot of em - you'd be surprised at the names on the list) now have to pay more for money. This could mean that investors are worried and want more compensation for risk, which means that the reality of the economy is shakier. OTOH, it could mean that investors are being more realistic, and not letting risky companies just have cheaper money to make value destructive decisions could be a good sign of sanity in the markets, and thus (in theory) the economy. It's hard to know with a simple headline or article. Even if you dig into all the numbers and do all the reading, it's still hard to know since the world is really complex.
I look at this as a single data point amongst many re: how I end up assessing my feelings about the economy. Truth be told, I'm probably more concerned about what lots of news outlets are discussing - all the AI capex spend. Apparently there's more financing being negotiated with fewer restrictions on the debt, which tends to be a really bad sign of a bubble.
1 reply →
> can someone explain what this means for the general economy?
Borrowing rates reflect other indices like 10-year treasuries, not short-term ones.
https://archive.ph/sxOOn
> The US junk bond rally came to a halt on Friday with the biggest one-day loss in six months, as the risk premium surged to near a four-month peak of 304 basis points. Yields climbed to 6.99%, the highest in more than two months.
> The losses accelerated after President Trump threatened to impose huge tariffs on imports from China and said he saw no reason to meet with Chinese President Xi Jinping, causing concerns about trade relations between the world’s two biggest economies.
> The weekly loss of 0.73% was also the biggest since April. The losses spanned across ratings amid the renewed tariff fears. Junk bond yields rose 15 basis on Friday and 31 basis for the week, the biggest increase in six months.
> CCC yields rose above 10% to a five-week high of 10.14% and spreads widened to a six-week high of 632 basis points. Spreads climbed 32 basis points on Friday, the most in one day since April. CCCs racked up a loss of 0.6% on Friday, the worst one-day loss in six months. CCCs closed the week with a loss of 1.05%, also the most in six months.
graph https://dgz78a1ch9fm7v.archive.ph/sxOOn/4d36a1090f1a44927848...
The Shiller ratio also indicates the US economy is in for a major correction. https://www.multpl.com/shiller-pe
Seems like a non-story. Junk bonds are corralated with equities, so Trump's tariff comment caused equities and by association junk bonds to go down.
Yes, but there's also an indicator that the size of the losses is correlating to "size and sentiment of junk bonds", meaning, there may be a few too many building up. Ultimately, if equities seesaw enough, there can be some collapsing.