Below compares Junk Bond Fund (PHDAX) with the S&P 500 over the past 20-years-CLICK ON CHART TO ENLARGE The long-term divergence went on for years and didn’t seem to matter to most. Some times Junk bonds can give quality hints to the next short & long-term move in stocks. (Read More: Bond Investors Were 'in Denial' About QE). var pixelurl = ((document.location.protocol === 'https') ? var setAdblockerCookie = function(adblocker) { mps._queue.adview = mps._queue.adview || []; } }); s.src = "https://fm.cnbc.com/applications/cnbc.com/resources/files/2020/03/28/VisitorAPI.js"; As support was being tested, momentum was nearing oversold levels at (2). mps._queue.adclone = mps._queue.adclone || []; typeof mps._gptfirst == "function" && mps._gptfirst(adunit, slotid); Date.now() : (function() { return +new Date })(); var postLoadFunctions = {}; var slotid = "mps-getad-" + adunit.replace(/\W/g, ""); March slipped to May. We have noticed that there is an issue with your subscription billing details. 'site' : 'cnbc.com-relaunch' , 'cat' : 'CNBC EVENTS|NetNet' , "If rates continue to increase, we could see massive outflows from high grade bond funds and a much more disorderly rotation with significantly wider credit spreads," Hans Mikkelsen, fixed income strategist at Bank of America Merrill Lynch, said in a note. 'cag[type_franchise]' : 'NetNet|Financials|Economy|Investment Strategy|Central Banks|Business News|Markets|Credit Market|Debt|Interest Rates|The Fed|Bonds|NetNet|Banks' , 'adunits' : 'Top Banner|Badge A|Badge B|Badge C|Badge D|Flex Ad First|Box Ad 1|Non Iframe Custom|Inline Custom|Movable Box Ad|Responsive Rectangle' , var mpscall = { By CNBC's Jeff Cox. Only 23 per cent of its £53.4 billion traded investments portfolio was in UK corporate bonds, while half was in multinationals such as Vodafone. (t&&t instanceof Function&&t.apply&&!t[a])}var o=t("ee"),i=t(22),a="nr@original",s=Object.prototype.hasOwnProperty,c=!1;e.exports=function(t,e){function n(t,e,n,o){function nrWrapper(){var r,a,s,c;try{a=this,r=i(arguments),s="function"==typeof n?n(r,a):n||{}}catch(f){p([f,"",[r,a,o],s])}u(e+"start",[r,a,o],s);try{return c=t.apply(a,r)}catch(d){throw u(e+"err",[r,a,d],s),d}finally{u(e+"end",[r,a,c],s)}}return r(t)?t:(e||(e=""),nrWrapper[a]=t,d(t,nrWrapper),nrWrapper)}function f(t,e,o,i){o||(o="");var a,s,c,f="-"===o.charAt(0);for(c=0;c