GDP – A Poor Measure of “Growth”
Last week the prices of the metals rose $35 and $0.82. But, then, the price of a basket of the 500 biggest stocks rose 62. The price of a barrel of oil rose $1.63. Even the euro went up a smidgen. One thing that did not go up was bitcoin. Another was the much-hated asset in the longest bull market. We refer to the US Treasury.
BofA Merrill Lynch high yield master II option-adjusted spread: on Dec. 23 it tightened to the lowest level of 2019, fairly close to its post-crisis low established in 2018. This seemingly signals that risk is very small – in reality, risk is probably extremely high. [PT]
The spread between Treasury bonds and junk bonds narrowed this week. It is now close to its post-crisis low.Read More »