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Interest-Sensitive Funds Showing Big Topping Patterns

Published 02/11/2022, 10:54 AM
Updated 07/09/2023, 06:31 AM

I’ve made quite a fuss lately about these enormous topping patterns on interest-sensitive funds which, I strongly believe, are pointing the way for a massive equity bear market this year. Check them out:

iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:EMB):

EMB Chart.

iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG):

HYG Chart.

SPDR® Bloomberg Barclays (LON:BARC) High Yield Bond ETF (NYSE:JNK):

JNK Chart.

iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:LQD):

LQD Chart.

iShares National Muni Bond ETF (NYSE:MUB):

MUB Chart.

 

Latest comments

There are also very nice tops on the DJIA, NAZ, RUT and SPX.
interest sensitive funds - all you talked about was bond funds and any 1st year business student - knows bond face value drops as interest rates rise - this is a very low effort article and only of any real value to the uneducated - I'd be more interested in something that gives a forward look at how you see each sector reacting to the change of rates - with everyone understanding some companies will do better based on specific financial situations!
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Hope you pulled all your money out?
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does it correlate strongly with equity performance in the past?
good question.
Generally, yes. esp in inflationary setting. stock price declines typically lag bond price declines. see 'Intermarket Push and Pull of Commodities, Bonds, Stocks and Currencies' in investopedia
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