Salient to Investors:

Ivan Martchev at Navellier & Assoc writes:

  • Last week’s equity collapse was predicted by the dramatic increase in the spread between junk bonds and Treasuries. Credit spreads are good overall indicators.
  • The sell-off in junk bonds was caused by weak commodity prices: new capacity in hard commodities and energy has been financed with junk bonds and with disappearing cash flows.

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