Market Overview

3 Charts Every Investor Must See

3 Charts Every Investor Must See
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On Tuesday Jeff Gundlach gave another terrific presentation on the markets. There were three charts, in particular, that really stood out to me.

The first shows the recent trend in junk bond issuance. Since 2009, it has just surged to levels never before seen, both nominally and as a percent of GDP:

The second chart shows a new rising trend in companies that are losing money and how default rates typically follow suit:

Finally, these trends are important because, as I’ve been writing for months now, the credit markets typically lead both the economy and the stock market.

'The bigger they come, the harder they fall?'

Related: Why You Should Be Worried About The Junk Bond Rout

This was originally shared on The Felder Report

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Bonds Broad U.S. Equity ETFs Specialty ETFs Technicals Markets Trading Ideas ETFs Best of Benzinga


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