{"id":11216,"date":"2015-08-19T06:52:16","date_gmt":"2015-08-19T11:52:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11216"},"modified":"2015-08-19T06:52:16","modified_gmt":"2015-08-19T11:52:16","slug":"if-history-is-any-indication-junk-bonds-and-copper-are-telling-us-exactly-where-stocks-are-heading-next","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11216","title":{"rendered":"If History Is Any Indication, Junk Bonds And Copper Are Telling Us Exactly Where Stocks Are Heading Next"},"content":{"rendered":"<h3><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/if-history-is-any-indication-junk-bonds-and-copper-are-telling-us-exactly-where-stocks-are-heading-next\" target=\"_blank\">If History Is Any Indication, Junk Bonds And Copper Are Telling Us Exactly Where Stocks Are Heading Next<\/a><\/h3>\n<p><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/if-history-is-any-indication-junk-bonds-and-copper-are-telling-us-exactly-where-stocks-are-heading-next\/stock-market-public-domain\" rel=\"attachment wp-att-9144\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9144\" src=\"http:\/\/theeconomiccollapseblog.com\/wp-content\/uploads\/2015\/08\/Stock-Market-Public-Domain-460x325.jpg\" alt=\"Stock Market - Public Domain\" width=\"460\" height=\"325\" \/><\/a>Yields on the riskiest junk bonds are absolutely soaring and the price of copper just hit a fresh six year low.\u00a0 To most people, those pieces of financial news are meaningless.\u00a0 But if you understand history, and you are aware of the patterns that immediately preceded previous stock market crashes, then you know how how<strong>huge<\/strong>\u00a0both of those signs are.\u00a0 During the summer of 2008, junk bond prices absolutely cratered as junk bond yields skyrocketed.\u00a0 This was a very clear signal that financial markets were about to crash, and sure enough a couple of months later it happened.\u00a0 Now the exact same thing is happening\u00a0<strong>again<\/strong>.\u00a0 The following comes from a\u00a0Wall Street On Parade article that was posted on Tuesday entitled \u201c<a title=\"Keep Your Eye on Junk Bonds: They\u2019re Starting to Behave Like \u201808\" href=\"http:\/\/wallstreetonparade.com\/2015\/08\/keep-your-eye-on-junk-bonds-theyre-starting-to-behave-like-08\/\" target=\"_blank\">Keep Your Eye on Junk Bonds: They\u2019re Starting to Behave Like \u201808<\/a>\u201c\u2026<\/p>\n<blockquote><p>According to data from Bloomberg,\u00a0<strong>corporations have issued a stunning $9.3 trillion in bonds since the beginning of 2009<\/strong>. The major beneficiary of this debt binge has been the stock market rather than investment in modernizing the plant, equipment or new hires to make the company more competitive for the future. Bond proceeds frequently ended up buying back shares or boosting dividends, thus elevating the stock market on the back of heavier debt levels on corporate balance sheets.<\/p>\n<p>Now, with commodity prices resuming their plunge and currency wars spreading,\u00a0concerns of financial contagion are back in the markets and spreads on corporate bonds versus safer, more liquid instruments like U.S. Treasury notes,\u00a0<strong>are widening in a fashion similar to the warning signs heading into the 2008 crash<\/strong>. The $2.2 trillion junk bond market (high-yield) as well as the investment grade market have seen spreads widen as outflows from Exchange Traded Funds (ETFs) and bond funds pick up steam.<\/p><\/blockquote>\n<p>And right now we are seeing the most volatility in the junkiest of the junk bonds.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If History Is Any Indication, Junk Bonds And Copper Are Telling Us Exactly Where Stocks Are Heading Next Yields on the riskiest junk bonds are absolutely soaring and the price of copper just hit a fresh six year low.\u00a0 To most people, those pieces of financial news are meaningless.\u00a0 But if you understand history, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1851,2656,5983,8258,8259,366,1297,501,4901,2721,860],"class_list":["post-11216","post","type-post","status-publish","format-standard","hentry","category-economics","tag-commodity-price-collapse","tag-copper","tag-economiccollapseblog","tag-etfs","tag-exchange-traded-funds","tag-global-economy","tag-junk-bonds","tag-market-crash","tag-michael-snyder","tag-us-treasuries","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11216"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11216\/revisions"}],"predecessor-version":[{"id":11217,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11216\/revisions\/11217"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}