High Yield Bonds: Mounting Threats

The high yield bond market is coming under increasing threat on a variety of fronts. But despite these mounting pressures, the high yield bond market at least thus far has shown resilience. How much longer this can last remains to be seen, however. A sustained correction in the high yield bond market may also provide an important signal about what may follow in the broader U.S. stock market.

Please click on the link to read more of my article on Seeking Alpha.

 

Making Sense Of The China Stock Roller Coaster

The China stock market continues to move like a roller coaster. After rallying by over +150% from last July to this June, it dropped by -35% in less than a month through early July. And in the three weeks since bottoming, it has rallied by as much as +24% only to pull back once again by -15%. My stomach feels nauseous just writing about it. But is it possible to make any sense of these recent moves? And is there any merit in climbing on board for a potential trade given these extraordinary swings?

Please click on the link to read more of my article on Seeking Alpha.

Industrials: How Market Illness Spreads

The industrials sector has recently fallen on some challenging times. After helping to drive the overall stock market higher for more than six years since the calming of the financial crisis, it has recently fallen off the pace. This is problematic for investors, as industrials more than any other sector travels closely together with the broader market. Given this recent weakness, it is worthwhile to explore its source and the potential for it to feed through to the broader market.

Please click on the link to read more of my article on Seeking Alpha.

Crisis Watch – Where Lightning Could Strike Next

It is a subject that has fixated investors since the calming of the financial crisis more than six years ago. Coming out of an experience where U.S. stocks lost more than half of their value and the global financial system nearly imploded, many were left in shock and have been bracing in the years since for the eruption of the next major market contagion. Perhaps such worries will end up being nothing more than the perpetual wall of worry that will continue to propel markets higher in the coming years. But the financial system still has major systemic risks nearly a decade removed from the last major crisis outbreak. As a result, it is reasonable to consider exactly how any such future market contagion might play itself out.

Please click on the link to read more of my article on Seeking Alpha.

September Or December: When Will The Fed Boost Rates?

As the summer quickly passes by and we head toward the fall, investors are increasingly turning their attention to the U.S. Federal Reserve. In one of the most deliberately managed and carefully broadcasted yet still somewhat suspenseful economic events in many years, the Fed is preparing to raise interest rates for the first time in nearly a decade. The move is significant because the Fed will be attempting to raise interest rates off of the so-called zero bound without shocking capital markets. It will be interesting to see how it all plays out. And given the perceived importance of the event on the markets and investor portfolio, it is worthwhile to consider how to best monitor the Fed’s next move.

Please click on the link to read more of my article on Seeking Alpha.

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