Another Troubling Sign For Stocks

ImageThe U.S. stock market continues to push along steadily to the upside. Not only are stocks firmly established in a long-term uptrend, but they also appear to have room to continue higher into the near-term. Overall, the performance of the U.S. stock market remains most impressive. Unfortunately, stocks are increasingly traveling this upside path alone, as many other major global markets and asset classes that are highly correlated with stocks have either already ground to a halt if not turned lower beginning as long as two years ago. The longer this disconnect lasts and the more stocks move higher by themselves, the greater the probability that U.S. stocks will finally succumb and fall in line with the rest of the crowd. And one of the latest categories to fall off the upside path is high yield bonds, which is particularly troubling since it is not only among the categories most closely related to U.S. stocks, but it also opens up a tangled web of related issues to consider.

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

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

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