Equities Will Break to the Upside? Junk Bonds Suggest So...

We express our concerns with equity markets in the four graphs below.......but particularly in the Value Line. For those of you who don't know what the Value Line index is all about, in essence it is an equally weighted index of 1650 stocks listed in the US. We believe that it is the best index to analyse because it gives a fair depiction of the behaviour of the average listed stock in the US. Anyway, the Value Line is now unchanged in four months and as of the last 30 days it has been locked in a very tight trading range between 2200 and 2100. The behaviour of the Value Line is also being echoed by the behaviour of the international developed market (GWX) and emerging market (EWX) ETFs.

We are actively involved in this credit, please call or email Peter Aman for current market prices and/or more information about this situation.

We are also active in many other high yield and distressed corporate bonds.

Peter Aman

PAman@aps-financial.com

800-248-0630