Mutual Fund Epicenter

This wouldn't be the first time
That things have gone astray
Now you've thrown it all away
--Bryan Adams

Interesting theory floated on Ask Fleck yesterday that the Next Time Down will be triggered by redemptions in fixed income mutual funds. Leveraged loans and junk bonds are beginning to show impairment.

If income sensitive investors begin liquidating fixed income mutual fund positions out of necessary (because they have reached for yield in overly risky bond funds), then the redemption ripple will work from periphery to core--taking out stocks as well as bonds.

position in SPX