Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Well, sort of. The S&P is still above all its simple moving averages; may be testing the 20 today.
It's very probable HY and stx will eventually converge, but the recent equity pattern hasn't broken yet, by any means. While credit and equity risk run in the same direction, the two asset classes don't march in lock step.
They may be right in a few days or a few weeks, but FA is jumping the gun at this point.
It's better for them to make the call early. Then, if they're right they will be viewed as having made the right call. If they're wrong, nobody really cares.
Comments
It's very probable HY and stx will eventually converge, but the recent equity pattern hasn't broken yet, by any means. While credit and equity risk run in the same direction, the two asset classes don't march in lock step.
They may be right in a few days or a few weeks, but FA is jumping the gun at this point.