Interesting pattern

I follow closely all types of bond ETFs or bond mutual funds. A pattern is slowly and steadily becoming more evident.

When the stock market is weak, as today, JNK declines. LQD, however, which represents higher grade bonds, rises.

I find this pattern particularly interesting. Why? Well, if you believe stocks are going to decline your should sell JNK and buy LQD.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest

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