High Yield: Good Would You Lot Expect At That (Hyg, Jnk)

A tendency appears to live emerging.

 FinViz:

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Following Up On: "The Coming High Yield Downturn Will Be Big, Long, And Ugly" " (HYG; JNK)

The quondam timers used to conk really somber when talking virtually the 1973-1974 equity comport market.
The thing, they said, was that it only kept grinding lower as well as lower, for 694 days.

By comparing the 2007-2009 turn down lasted 517 days, though deeper at a 54% drib inwards the DJIA versus 45% (43% on a closing basis) for the index inwards the before bear.
On the London Exchange the 73-74 collapse was 73% inwards the FT thirty as well as 68.5% for the wider market.

But so at that topographic point was the inflation. 
British inflation rose 10.6% inwards 1973 as well as 19.1% inwards 1974. And although lower, the comparable figures for the USA were the same gild of magnitude, 8.7% as well as 12.3%. 
The inflation adjusted declines were hence only that much worse as well as alongside the worst existent returns inwards history—excluding of course of written report the Berlin Stock Exchange upwards to 1945 as well as the FX marketplace position for the shekel/denarius cross inwards the twelvemonth 70, what with the devastation of Jerusalem as well as the Temple as well as all.

Anyhoo, all this is prelude to a uncomplicated chart, the SPDR Bloombergg Barclays High Yield Bondd ETF, symbol JNK:

FinViz

As tin flame live seen, this piddling beauty is non doing well, non good at all if you lot ain it and if nosotros are reading the portents correctly the adjacent pair years could live fifty-fifty worse for junk bond holders.
Here's June 7's "The Coming High Yield Downturn Will Be Big, Long, And Ugly".

That gets us dorsum to June. Yes we've been a flake obsessive virtually this.