US high yield corporate bonds offer a very low premium relative to government bonds according to long-term average levels. Moreover, there are clear signs of extreme exuberance from meaningful technical indicators. Investors should therefore consider reducing their exposure
Analyst’s Disclosure:I am/we are long SPY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am long SPY from an asset allocation perspective with an 'underweight' tactical weighing.
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