[ad_1]
Contemplating our nationwide debt and the money owed of firms and customers, it’s evident that the bond market is important to our economic system.
That is doubtless why the iShares iBoxx Funding Grade Company Bond ETF (NYSE:) began to sputter final yr, effectively earlier than the bear market in shares this yr.
You’ll be able to see the flip decrease on right this moment’s chart, a long-term month-to-month chart of LQD. This downturn additionally hinted on the financial slowdown we’re seeing.
So, is it a very good or unhealthy time to promote bonds?
As November was coming to an finish, the Funding Grade Bonds ETF (LQD) recorded the most important one-day outflows in its historical past at (1). Might this be a contrarian indicator of a backside?
It’s value noting that LQD recorded certainly one of its lowest RSI (Relative Energy Index) readings within the historical past and is popping increased after testing its 61% Fibonacci retracement stage at (2).
Will these historic readings/indicators result in a broader rally in investment-grade company bonds? Keep tuned.
[ad_2]
Source link