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One of the world's "smartest" markets says stocks could have much further to fall
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Tuesday, August 16, 2011
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From Bespoke Investment Group:

Whenever the equity market is having big moves to the upside or downside, it often helps to compare the move to trends in the credit markets, and more specifically high-yield credit spreads. When the equity market is rising, we should see spreads on high-yield bonds contract, and vice versa when the equity market is declining.

With this in mind, the recent widening of spreads in the high-yield market is a potential red flag. According to…

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Topics: Stocks | Cruxallaneous
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