Credit spreads are about the tightest they've ever been in history.
High yield (aka "junk") debt is currently priced at a very low premium to US Treasury debt, the safest asset in the world.
That says the bond market is just not worried about risk.
So either, "everything truly is awesome"...or the market is mis-pricing risk here, perhaps dangerously so.
Whether or not that's the case, it's highly unlikely those expecting a material downwards market correction will see one until credit spreads first start widening.
Which is why monitoring them closely is such a high priority.
Portfolio manager Lance Roberts and I discuss the importance of credit spreads, the new inflation & jobs data, bond yields, the latest technical analysis for stocks, as well as Lance's firm's recent trades.
For everything that mattered to markets this week, watch the video below:
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