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| Remember the taper talk in late June? Everything sold off - bonds, stocks, and gold. But now junk bonds (in red) are just off new all-time highs, while blue-chip bonds (in black) have recovered almost to pre-taper levels, and gold (not pictured here) is almost at the June lows. The following is a long-term chart that shows what happened the last time junk bonds were well ahead of investment grade debt. |
