Everywhere we look, we see signs the great government "goosing" of the economy is pushing assets higher. In just the past couple months, we've profiled rising crude oil, copper, bank stocks, home-improvement stocks, and restaurant stocks to show you this trend at work.
Today, we show you a market far larger and more important than measly restaurant shares… We show you the bond market.
Seasoned investors pay close attention to the bond market… even more than the stock market. Companies are legally obligated to pay off bondholders before shareholders see a penny in dividends. So if the price of bonds is headed lower, you know there's serious trouble in the markets.
Today's chart displays the price action in HYG, one of the largest investment funds that owns corporate debt. As you can see, there's no "serious trouble" in the bond market right now. Debts are being serviced… creditors are pleased… and bond prices are near their highs for the year. Sure, the U.S. government debt problems will come home to roost, but for now, the trend in most everything is UP. It will end when it ends.
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