{"id":15109,"date":"2015-12-09T07:17:50","date_gmt":"2015-12-09T12:17:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15109"},"modified":"2015-12-09T07:17:50","modified_gmt":"2015-12-09T12:17:50","slug":"guess-what-happened-the-last-time-junk-bonds-started-crashing-like-this-hint-think-2008","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15109","title":{"rendered":"Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008"},"content":{"rendered":"
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Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008<\/a><\/h3>\n<\/div>\n
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\nThe extreme carnage that we are witnessing in the junk bond market right now is one of the clearest signals yet that a major U.S. stock market crash is imminent.\u00a0 For those that are not familiar with \u201cjunk bonds\u201d, please don\u2019t get put off by the name.\u00a0 They aren\u2019t really \u201cjunk\u201d.\u00a0 They simply have a higher risk and thus a higher return than other bonds of the same type.\u00a0 And\u00a0yesterday<\/a>, I explained why I watch them so closely.\u00a0 If stocks are going to crash, you would expect to see a junk bond crash first.\u00a0 This happened in 2008, and it is happening again right now.\u00a0 On Monday, a high yield bond ETF known as JNK crashed through the psychologically important 35.00 barrier for the very first time since the last financial crisis.\u00a0 On Tuesday, high yield bonds had their worst day in three months, and JNK plummeted all the way down\u00a0to 34.44<\/a>.\u00a0 When I saw this I was absolutely stunned.\u00a0 This is precisely the kind of junk bond crash that I have been anticipating that we would soon witness.<\/p>\n

Normally, stocks and junk bonds track one another very closely, but just like before the 2008 crash, they have\u00a0become decoupled<\/a>\u00a0in recent months.\u00a0 Anyone that even has an elementary understanding of the financial world knows that this cannot continue indefinitely.\u00a0 And when they start converging once again, the movement could be quite violent.<\/p>\n

When I chose to use the word \u201ccarnage\u201d to open this article, I was not exaggerating what is going on in the junk bond market one bit.\u00a0 On Tuesday evening,\u00a0Jeffrey Gundlach<\/a>\u00a0used the exact same word to describe what is happening\u2026<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008 The extreme carnage that we are witnessing in the junk bond market right now is one of the clearest signals yet that a major U.S. stock market crash is imminent.\u00a0 For those that are not familiar with \u201cjunk bonds\u201d, please […]<\/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":[5983,402,1297,4901,2731],"class_list":["post-15109","post","type-post","status-publish","format-standard","hentry","category-economics","tag-economiccollapseblog","tag-high-yield-bonds","tag-junk-bonds","tag-michael-snyder","tag-stock-market-crash"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15109","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=15109"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15109\/revisions"}],"predecessor-version":[{"id":15110,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15109\/revisions\/15110"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}