If junk-bond mania is over, you wouldn’t know it from the so-far shallow correction of a bull market that recently entered its fourth year (see inset). There has yet to be an impulsive correction on the daily chart, which means that bulls must be given the benefit of the doubt no matter what one thinks of high-yields. A move to new highs would not be incongruous with the sub-2% yields that may lie ahead for the long bond. More on this will be forthcoming in a guest essay by our friend Doug Behnfield, a top financial advisor at USB.
