Money Week editor John Stepek has looked at the recent mutual fund collapse in the junk bond market and correctly warns that it is a canary in the coal mine:

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If you were around during the financial crisis, you might remember that fund closures became one of the canaries in the coal mine.

Various funds failed in the run-up to the crisis, as bad bets on risky assets went wrong and the economic backdrop became steadily less forgiving.

Why am I reminding you of this? Because we’ve just seen the biggest mutual fund failure in the US since 2008…

The full Money Week article can be read here

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(LBMA AM)

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