/biz/ - Business & Finance

>>10059370
know m8 thats what ive been telling everyone all week.

but nooooo... teh profits retarded
teh profits a small specc

KEK

>>10059372
fuck that. im buying on friday and absolutely NO sooner. thats been my plan since saturday

>>10059386
i think were going far further than that desu senpai
everytime we get these major divergences (see orange lines in pic) there is a LARGE VIX spike. and i dont mean like the last few days. i mean a HUGE one. if you watch th VIX, these things come in waves. tomorrow could be green for all i know, but i have my bets and im sticking to all of them rn.

>>10027941
>tfw WSJ is lurking my shit

but just think about how they work
theyre what you buy when safer bond yields are shit.
now thats less of a problem, and the risk involved in holding these things is pretty immense if suddenly everyone dumps their hi risk debt

think of it almost like a stock thats constantly being diluted. more debt is created continuously or rolled into more debt with higher yields. if no one buys it itll just fall, its not like a stock. theyre IOUs, pieces of paper if no one is enough of a sucker to buy em. and look at how it acts. eventually cost/yield/risk is all outta whack and they plummet.

if you look at the chart, its just a bouncy ball (or asymmetric titty formation) of this exact sentiment shift. its been losing steam all last year, and now obviously going down, just like last time

heres a zoomed in version so you can see how the BB width taking sudden dives will mean that junk bonds are taking a dive. in the weeks to months that follow, VIX ALWAYS rises, and the equities market usually culminate in a large dip worth buying