“It’s tough to make predictions, especially about the future.” -Yogi Berra
Is this the start of a high yield bond rout that many bond experts have been predicting?
Is the S&P 500 performance this year a good indicator of the overall market?
Will instability in the bond market spread to other asset classes?
What is the blueprint for the next financial crisis?
These are all questions that clients have asked recently and I thought this would be a good chance to discuss these issues as a wrap up of 2015.
Lets start by taking a look at what has happened this year, where we stand today, and try to pass some judgement on what could happen in 2016. Normally I don’t write about “predictions”. Yogi Berra was a wise man. However I think this post is relevant to the nature of the markets and the growing instability that is occurring under the surface.