Fed green lights risk taking...

In line with what was speculated upon earlier, junk bonds are one 'asset' class that perceives a perpetual backstop compliments of our friends at Policy Central.  The ratio of 'junk' to 'investment grade' (lower panel) however, remains a bearish divergence below the red dotted lines.  But that pattern in nominal JNK ultimately targets 43+.  Edit (3:30) Oh and this post is not to be taken as a green light on risk taking.  Quite the contrary; the risk vs. reward ratio for the broad markets sucks at the moment.

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