The charts below, courtesy of Bespoke, show that the preferred stock and high-yield bond markets have been surging since the beginning of December.
Bespoke said: “Since the Lehman Brothers’ collapse on September 15, 2008, PFF is actually up 12.91%, while HYG is down just 2.89%. With preferreds and high-yield bonds now at or near pre-Lehman levels, how long will it take for common stocks to get there as well? As shown below, the S&P 500 is still 8.7% below the 1,251 level it closed at on September 12, 2008.” Is it just a question of time?
Source: Bespoke, January 13, 2010.
