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Authored by Mike Shedlock via MishTalk, The stock market is unlikely to crack until speculation in junk bonds gets blown out of the water. The high-yield index hit record highs on Powell's dovish Fed outlook. The lowest-rated debt has led the charge with 6% returns this year. Bloomberg reports Junk Bonds Rage as Clear Channel Sells Biggest CCC in Months. High-yield debt has already proven to be one of the best-performing asset classes in fixed income this year, led by CCC rated bonds that have so far returned just over 6 percent, Bloomberg Barclays index data show. Junk bonds and speculative risk taking go hand in hand with stock market gains. With that thought, let's discuss take a look at bond ratings to see what's delivering the gains. CCC Debt Leads the Revival CCC rated "garbage" one or two steps above "default imminent" is leading the rally. The stock market is now a political tool. Many non financial friends of mine have an entitlement to 12-15% returns with little to no negative variance. That has become expectation of retail investors. They use this to subsidize low/no wage growth and fwd consumption. — Brandon C (@bwc77) February 8, 2019 We haven't had a Fed chairman with any guts or Independence since Volker. I was hoping for better from Powell but it looks like he may be one of the worst — steve (@x22steve8224) February 8, 2019 What's Powell going to do for an encore? Buy junk bonds?