How Much Do You Trust Your EM Bond ETF?
Ok, so over the past couple of days, more than few people have noted how similar the charts look if you plot U.S. stocks versus JNK or HYG and then compare that visual to a plot of EEM versus EMB.
Here's the former:
And here's the latter:
Obviously, you can pick this comparison apart, but do me a favor and stay on message here, ok? That is, don't act like you have no idea why anyone would compare those two charts.
In both cases, you've got a corner of the credit market which
hmmmm….comparable to those things called S&L’s back in the 80’s that financed 30 yr mortgages with time deposits…..What could go wrong???
I only know one persin willing to buy the “damn bonds”…..Kuroda