The corporate bond market is a $6 trillion time bomb waiting to go off.
It took the US half a century to grow its corporate bond market to $3 trillion.
Thanks to the Fed implementing ZIRP and holding rates there for seven years, we’ve doubled the corporate bond market, adding another $3 trillion in corporate debt… since 2009.
These bonds are junk… literally. The average credit rating is junk. All told, since 2012, 75% of companies accessing the bond market have had a credit rating of single-B.
The Single Best Options Trading Service on the Planet
THE CRISIS TRADER has produced an astounding 248% return on invested capital thus far in 2016.
We have a success rate of 72% meaning we make money on more than seven out of 10 trades. And thanks to careful risk management we’ve seen triple digit returns on invested capital every year since inception.
Our next trade goes out this morning… you can get it and THREE others for just 99 cents.
To take out a $0.99, 30-day trial subscription to THE CRISIS TRADER...
So… if the corporate bond market is now TWICE as large as it was in 2008. And the quality of the bonds is lower than it was at the PEAK of the previous bubble… what does that tell us about the state of affairs for the markets in 2016?
And look… delinquencies are spiking on corporate loans from commercial banks… indicating that businesses (the same businesses that are issuing record amounts of garbage debt) are not paying banks back for corporate loans.
More and more this environment feels like late 2007/ early 2008: when the economy was in collapse but stocks held up on hopes that the Fed could maintain the bubble.
The time to prepare for this bubble to burst is now. Imagine if you’d prepared for the 2008 Crash back in late 2007? We did, and our clients made triple digit returns when the markets imploded.
We’re currently preparing for a similar situation today.
Indeed, subscribers of my Private Wealth Advisory newsletter just closed out THREE more winners last week: gains of 10%, 12% and 15% produced in just a few weeks’ time.
This brings our winning trade streak to 81 straight winning trades.
Indeed, we haven’t closed a single loser since November 2014.
81 straight winners… and not one closed loser… in 18 months.
However, I cannot maintain this kind of track record with thousands of investors following our recommendations.
So we are going to be raising the price on a Private Wealth Advisory subscription from $199 to $249 at the end of the month.
However, you can try Private Wealth Advisory for 30 days today, for just 98 cents.
If you find that Private Wealth Advisory is not for you, just drop us a line and you won’t be charged another cent.
To take out a 30 day trial to Private Wealth Advisory for just 98 cents…
Chief Market Strategist
Phoenix Capital Research
Our FREE e-letter: https://gainspainscapital.com/
Follow us on Twitter: http://twitter.com/GainsPainsCapit