Business

On one hand, credit investors have never had it better with IG credit spread at record tights and junk bond yields sliding to 3 year lows

On the other, and this is linked to the above, they have never been more nervous, and as the latest Bank of America credit investor survey shows, more worried about the Fed in general, and "Quantitative Failure" in particular.

But why, if as so many claim, the Fed has nothing to do with the the return of risk assets? Ignore that, it's rhetorical.

Despite constantly being told the market's rally has nothing to do with President Trump (as he claims ownership), stocks, bond yields, and the dollar all stumbled notably when two unnamed sources familiar with the matter reportedly said Special Counsel Robert Mueller has impaneled a grand jury in Washington to investigate allegations of Russia’s interference in the 2016 elections.

While stock investors 'bought the dip', The Dollar and Bond Yields remain near the lows.

Authored by Lance Roberts via RealInvestmentAdvice.com,

In a recent post by Jeffrey Snider he made an important observation:

While hard data has been hovering at 2-year lows, soft data has been rebounding recently... until today - The ISM Services index saw its steepest m/m decline this month since the financial crisis.

Mueller headlines spooked stocks at the end of the day but the machines had one message for investors...

Authored by Wolf Richter via WolfStreet.com, 

"The real economy has little to gain, and much to lose.”