The Effective yield on high-yield bonds (junk bonds) are at historic lows. Over the past six years -- as the yield broke above resistance of bullish falling wedges -- the S&P 500 wound up declining between 17% and 50%.
Now the yield on junk bonds is breaking above resistance of a bullish falling wedge for the third time since 2007.
The Question Is
Should we listen to the message coming from the yield breakout? Will it be different this time?