Above compares the Pimco High Yield Fund (PHDAX) to the S&P 500 over the past 20-years.
Junk bonds diverged from the S&P 500 for nearly 24-months, prior to stocks peaking in 2000.
Junk bonds diverged from the S&P 500 for nearly 7-months, prior to stocks peaking in 2007.
Junk bonds have been diverging from the S&P 500 for the past 12-months. Will it be different this time?
At this time “It Doesn’t Matter Until It Matters!”
