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Adam Robinson: Cracking the System and Simplifying Life’s Complexities

Smarter Not Harder

CHAPTER

High Yield Bonds vs Investment Grade Bonds

Bond traders express their view of the future by buying corporate bonds and short US treasuries. When that ratio begins to diverge, the bond traders are right and early. So I know when the two are moving in lockstep and then all of a sudden the bond traders start moving off this way, then I know the stock traders are going to follow soon after. But you can look at the high yield versus the investment grade like all those those are as well.

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