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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: andiron who wrote (62609)1/23/2007 2:05:31 PM
From: mishedlo  Read Replies (1) | Respond to of 116555
 
I believe he is saying that the spreads between junk and treasuries continues to narrow.

He is correct that narrowing spreads are supportive of stocks

Mish



To: andiron who wrote (62609)1/23/2007 3:24:43 PM
From: Crimson Ghost  Respond to of 116555
 
Actually it moves in the SAME direction as spreads. My mistake.

AFBIX drops when spreads are norrowing and rises when spreads are widening.

It has dropped recently despite the rise in yields.

Junk spreads are all that matter for AFIBX