Defaults May Signal Bursting Muni Junk Bubble After 30% High-Yield Surge Investors in search of better returns poured $7.8 billion into high-yield municipal bond funds last year, pushing assets to a two-year high. They may start experiencing losses as early as this year as default risks grow.

Stocks Likely to Fall Into `Air Pocket' as Bond Yields Climb: Chart of Day U.S. stocks rallied so much during the past year that they are vulnerable to a slump as interest rates rise and inflation accelerates, according to John Hussman, who oversees about $7 billion at the Hussman Funds.

S&P 500 May Overcome January Highs, Robert Baird Says: Technical Analysis The Standard & Poor’s 500 Index may surpass this year’s January high because market momentum picked up without turning investors overly bullish, according to Robert W. Baird & Co.’s chief investment strategist Bruce Bittles.

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