Typically, when uncertainty surrounds the market institutional money moves to the sidelines. Deron Wagner's current market bias has now shifted toward neutral.
High yield bonds have remained a favored risk-on asset class for most of the last two years, but today's chart suggests that the dissonance and negative divergences are becoming ever more apparent.
While the feds pump up prices worldwide, the average fellow in America or Europe is unable to keep up. Local products and services are actually falling in price as he eases off his buying habits.
Deron Wagner provides an explanation of why it is often difficult to trade in the wake of volatility, and uses iShares MSCI Japan Index ETF (EWJ) as an example.
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