Wednesday, January 7, 2015


Stock market averages up in the morning.

JNK as a representative of junk bonds up as well, but not so much volume. Volume is what matters. Perhaps the volume will come later. But not so far today.

The selloff in the junk bonds has been related to the plunge in the price of oil and the fact that a great many of the high yield corporate bonds are from the oil producers, explorers, drillers. It is uncertain how long the price of oil will stay low, or how low it may go due to Saudi production and world overproduction and lack of demand. And that uncertainty translates into uncertainty regarding the viability of companies in the earl bidness.


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