For those wondering, we are at that point in the bubble where Wall Street professionals are actively urging investors to buy everything they have to sell.
Take Bob Michele – the chief investment officer at JPMorgan Asset Management which manages $2.3 trillion – who had some bad news for everyone sounding alarms on asset bubbles: there’s much more credit euphoria to come. Speaking to Bloomberg, Michele said he was betting on an ever-more intensifying rally across junk bonds, emerging market debt and risky bank securities.
Why? Because “stimmy” checks of course, or as he put it, fresh stimulus beckons.
In his euphoric vision of the coming uber-bubble, Michele says average U.S. junk-bond spreads are set to drop to 300 basis points, and over the course of the next year could test pre-financial crisis lows of 250 basis points. As a reminder, last week we showed that the average “high yield” (lol) bond now has an average yield of less than 4%!