What does the bond market know that the stock market doesn’t?
Even the U.S. stocks (NYSEARCA:IWV) have been scoring one record high after another, the SPDR Barclays High Yield Bond ETF (NYSEARCA:JNK) has gone in the opposite direction.
The performance divergence between high yield bonds (also known as “junk bonds) (NYSEARCA:HYG) and the S&P 500 (SNP:^GSPC) began on May 22 and has grown.
…
The past six years have been brutal for dividend and income investors. Zero percent interest rates have depressed bond yields (NYSEARCA:BOND) and with major stock indexes (^DJI) now trading at all-time highs, dividend yields relative to prices have fallen too.
Last year, the number of S&P 500 (NYSEARCA:SPY) stocks paying a dividend touched a 17-year high (417 or 84% of index components).
…
Click the report icon to sign up and receive one FREE month of ETF Premium Membership.
Simply provide your email address and we'll give you One FREE Month of ETF Premium!
