Friday, October 17, 2014

Let's check in on the Götterdämmerung in high yield


Um, or not.

That's... let's count this. Thirteen? Yup, that's thirteen days of selling that turned out to be at a loss as of today.

So when are the hedge fund clowns who puke this gonna learn? Because it's the hedge fund clowns who buy and sell HYG, you know. It's not Joe Sixpack. Joe Sixpack doesn't buy a high-yield corporate bond ETF. The "investment advisor" at the bank wouldn't tell him to buy it. And he's certainly not going to trade in and out based on some ignorant talking head at CNBC.

But the hedge fund clowns don't care when they're puking stuff like this, since they're getting their 2 & 20 anyway. They don't need to actually show a profit as long as they get to fuck over endowments to the tune of 2% of assets per year, right?

That's why you have to know what you're really looking at when you base your stupid theories on charts of ETFs like HYG. Yes, HYG is a risk-on asset; but "risk-on" doesn't have anything to do with US economic conditions or fiat money or "a dishonest system coming apart at the seams".

HYG is an easily-tradeable ETF with an illiquid underlying that can't handle a stampede of ignorant fraudster lemmings who have no qualms selling an asset at a loss because they still get their 2%.

Just like Magna or Union Pacific.

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