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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Crimson Ghost who wrote (24067)1/5/2005 4:23:31 PM
From: NOW  Read Replies (1) | Respond to of 110194
 
"It should also be noted very tight credit spreads are in fact a contrary indicator. Recall the 2002 stock market low was made amid a state of near-panic in below investment grade corporate debt, with spreads blowing out to extreme wides - a contrarian buy signal at the time. It follows that extremely narrow spreads have the opposite implication."
Heinz