Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Junk spreads are maximal at bottoms, minimal at tops of markets, if the spread is already quite narrow, in the next six months, particularly, if we start and get slowing economic growth (leading to possible negative growth) such spread will expand, and equity drop. We should be watching the monthly employment figures, if they keep strong as last month, things should be fine, if they start and retrench under the 200,000 level for few months, it may foreshadow problems in equities later on, IMTO.