The oil collapse is about to trigger a crisis in junk bonds.
Oil has been going straight down for weeks now. As we write this, black gold is below $43 a barrel, down 16% from its levels a month ago.
“So what?” you might ask, “oil experiences similar drops all the time. Why is this important?”
This is important, because the high yield, or junk bond market is closely associated with oil prices. And if oil continues to collapse we’re going to start seeing some serious contagion risks in high yield credit.
And you know what asset class tracks High Yield Credit or Junk Bonds?
Stocks…
A crash is coming…
And smart investors will use it to make literal fortunes from it.