JNK - SPDR High Yield Bond ETF
TLT - Barclays 20+ Year Treasury Bond ETF
When investors prefer to be in high yield bonds like JNK it is usually a good time to participate in the stock market...
When investors prefer to be in quality bonds like TLT it is usually not a good time to participate in the stock market ...
The second chart above shows the relative strength of JNK as compared to TLT...
This ratio has a tendency to confirm the turns in the stock market...
When investors prefer buying JNK this chart will go up and when investors prefer buying TLT this chart will go down...
As seen at the top of this blog, maybe it is best said as follows... "Confidence is contagious. So is lack of confidence" -Vince Lombardi
Past performance is not indicative of future results.
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