{"id":48328,"date":"2020-06-09T10:41:00","date_gmt":"2020-06-09T14:41:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=48328"},"modified":"2023-02-10T13:34:03","modified_gmt":"2023-02-10T18:34:03","slug":"we-saw-a-flight-to-quality-how-about-a-flight-to-crap","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/","title":{"rendered":"We Saw a Flight to Quality.  How About a Flight to Crap?"},"content":{"rendered":"\n<p>Experienced investors have almost surely heard the phrase \u201cflight to quality.\u201d&nbsp; \u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment.&nbsp; During uncertain times, investors usually seek a lower risk profile for their investments.&nbsp; During a flight to quality, bondholders seek higher-rated and shorter-term fixed income instruments and stockholders gravitate toward companies with more stable earnings and revenues.&nbsp; &nbsp;&nbsp;Markets are continually seeking an equilibrium between fear and greed.&nbsp; A flight to quality occurs when fear dominates greed.<\/p>\n\n\n\n<p>Yet I know of no equivalent term for the inverse of flight to quality, a term that applies when greed all but abolishes fear; when investors are willing to embrace even the riskiest assets seemingly without regard for valuation.&nbsp; I propose the term \u201cflight to crap\u201d.<\/p>\n\n\n\n<p>\u201cFlight to crap\u201d is an inelegant phrase, but I fear that it does a reasonable job describing the speculative mania that has gripped certain segments of the equity markets.&nbsp; The recent rebound in the broader equity indices may be overextended in the near term, but I have heard many reasonable arguments for why current valuations could make sense if the economy rebounds quickly after the unprecedented levels of stimulus.&nbsp; A potentially overbought market does not signify a flight to crap.&nbsp; If levelheaded investors can choose whether they agree with that narrative or not, and make an informed decision as to whether greed has outpaced fear in the short term, that is not the scenario that applies.&nbsp;<\/p>\n\n\n\n<p>No, a flight to crap occurs when we see money piling into stocks or sectors strictly because they are going up, because speculative traders see the possibility of profit by jumping on a trend. &nbsp;This is momentum investment on steroids, when speculators see a trend and the only thing that matters to them is price movement.&nbsp; Fundamental valuations matter little, if at all.<\/p>\n\n\n\n<p>Let\u2019s take a look at some of the biggest winners of the past few days:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Closing prices<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Symbol<\/td><td><\/td><td>1-Jun<\/td><td><\/td><td>8-Jun<\/td><td><\/td><td>% Change<\/td><\/tr><tr><td>HTZ<\/td><td><\/td><td>0.8903<\/td><td><\/td><td>5.53<\/td><td><\/td><td>521%<\/td><\/tr><tr><td>LK<\/td><td><\/td><td>2.04<\/td><td><\/td><td>4.81<\/td><td><\/td><td>136%<\/td><\/tr><tr><td>GNUS<\/td><td><\/td><td>2.62<\/td><td><\/td><td>5.15<\/td><td><\/td><td>97%<\/td><\/tr><tr><td>CHK<\/td><td><\/td><td>13.01<\/td><td><\/td><td>69.92<\/td><td><\/td><td>437%<\/td><\/tr><tr><td>XSPA<\/td><td><\/td><td>0.825<\/td><td><\/td><td>2.24<\/td><td><\/td><td>172%<\/td><\/tr><tr><td>AAL<\/td><td><\/td><td>11.11<\/td><td><\/td><td>20.31<\/td><td><\/td><td>83%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>To many, Hertz (HTZ) is the poster child for flight to crap.&nbsp; The company declared bankruptcy on May 26, and Carl Icahn, their largest investor, sold his holdings the next day for less than $1 per share.&nbsp; Mr. Icahn makes mistakes like everyone \u2013 and HTZ was a big one &#8211; but I find it nearly impossible to believe that this veteran of high stakes takeover battles would dump his holdings if he saw any residual value in the shares.&nbsp; How could someone rationally expect that the value of the share was worth over 5 times more than the largest holder\u2019s assessment?<\/p>\n\n\n\n<p>Luckin Coffee (LK) is the Chinese ADR of a company that has acknowledged fraud.&nbsp; I have no idea what the true value of this company might be since their financial reporting may be misleading or even fictional.&nbsp; I also have no idea of the process in China is for recovering money from a tainted company.&nbsp; How many of the current investors know the answers themselves?&nbsp;&nbsp; There may be value in the shares, but I see no reason why there is twice as much value this week over last.<\/p>\n\n\n\n<p>American Airlines (AAL) is a well-known company with a global presence.&nbsp; Another investor with an enviable track record, Warren Buffett, exited his airline shares amidst the global pandemic.&nbsp; In recent sessions, airline stocks have shown improvement as the markets view worst of the crisis to be behind us.&nbsp; Last week a case could be made for investing in the sector at those valuations.&nbsp; I also find it hard to believe that the market and a legendary investor were that far off from fair value in a well-analyzed company.<\/p>\n\n\n\n<p>Chesapeake Energy (CHK) has been on the ropes for weeks.&nbsp; On April 15<sup>th<\/sup>, they underwent a 1:200 reverse split to maintain compliance with listing standards.&nbsp;&nbsp; Healthy companies don\u2019t need to take measures of that sort.&nbsp; At yesterday\u2019s close there was a headline that the stock nearly tripled after 22 trading halts.&nbsp; Literally the next headline was that the company was said to be preparing a Chapter 11 bankruptcy filing.&nbsp; Anyone who had been paying attention would have known that this was a risk.&nbsp;<\/p>\n\n\n\n<p>The common theme between these and other shares with sharp rallies is that there was a short squeeze on the shares.\u00a0 Those who want to short a stock must borrow it.\u00a0 When stocks divorce themselves from fair value, short sellers smell an opportunity.\u00a0 So do stock lenders.\u00a0 The borrow rate on these stocks soars.\u00a0 At that point other investors smell a different sort of opportunity.\u00a0 They attempt to squeeze the shorts, hoping that the short sellers will cover at ever increasing prices.\u00a0 Over recent sessions, we have seen enormous short squeezes that have taken on a life of their own, attracting traders sniffing the momentum in those stock prices.\u00a0<\/p>\n\n\n\n<p>Over time, these situations usually resolve themselves.&nbsp; Large investors eventually move bigger stocks closer to fair value.&nbsp; Bankrupt stocks resolve themselves more painfully, when a court decides that the residual equity is worthless or something close to it.&nbsp;<\/p>\n\n\n\n<p>There is a term for those who buy a stock not because of its value but strictly on the hope that someone else will pay more for it.&nbsp; That\u2019s called the \u201cGreater Fool Theory\u201d.&nbsp; If that is the sole premise behind your purchase of a given stock, how can you be sure that you will not be the last one holding the bag?&nbsp; There are no certainties in investing \u2013 why make it harder on yourself?<\/p>\n\n\n\n<p>Over time I expect that cooler heads will prevail, and that markets will return to an equilibrium between fear and greed.&nbsp; In the meantime, try to avoid being swept up in a flight to crap.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment.  During uncertain times, investors usually seek a lower risk profile for their investments.  <\/p>\n","protected":false},"author":4,"featured_media":27572,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[14700,18,6,8,9,26,3],"tags":[3272,4523,7732,1708,1167,7774],"contributors-categories":[13576],"class_list":{"0":"post-48328","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ibkr-market-insights","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-text-articles","13":"category-traders-insight","14":"tag-aal","15":"tag-chk","16":"tag-gnus","17":"tag-htz","18":"tag-lk","19":"tag-xspa","20":"contributors-categories-interactive-brokers"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>We Saw a Flight to Quality.  How About a Flight to Crap?<\/title>\n<meta name=\"description\" content=\"\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment. During uncertain times,...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/48328\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"We Saw a Flight to Quality. How About a Flight to Crap? | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment. During uncertain times, investors usually seek a lower risk profile for their investments.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-09T14:41:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-10T18:34:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Steve Sosnick\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Steve Sosnick\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Steve Sosnick\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/31988d9596575a63ddc53e92049a2549\"\n\t            },\n\t            \"headline\": \"We Saw a Flight to Quality. How About a Flight to Crap?\",\n\t            \"datePublished\": \"2020-06-09T14:41:00+00:00\",\n\t            \"dateModified\": \"2023-02-10T18:34:03+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/\"\n\t            },\n\t            \"wordCount\": 1007,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2019\\\/12\\\/yield-corporate-bonds1.jpg\",\n\t            \"keywords\": [\n\t                \"AAL\",\n\t                \"CHK\",\n\t                \"GNUS\",\n\t                \"HTZ\",\n\t                \"LK\",\n\t                \"XSPA\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"IBKR Insights\",\n\t                \"Macro\",\n\t                \"North America\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/\",\n\t            \"name\": \"We Saw a Flight to Quality. How About a Flight to Crap? | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"primaryImageOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/#primaryimage\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2019\\\/12\\\/yield-corporate-bonds1.jpg\",\n\t            \"datePublished\": \"2020-06-09T14:41:00+00:00\",\n\t            \"dateModified\": \"2023-02-10T18:34:03+00:00\",\n\t            \"description\": \"\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment. During uncertain times, investors usually seek a lower risk profile for their investments.\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"ReadAction\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"ImageObject\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\\\/#primaryimage\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2019\\\/12\\\/yield-corporate-bonds1.jpg\",\n\t            \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2019\\\/12\\\/yield-corporate-bonds1.jpg\",\n\t            \"width\": 900,\n\t            \"height\": 540\n\t        },\n\t        {\n\t            \"@type\": \"WebSite\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"name\": \"IBKR Campus US\",\n\t            \"description\": \"Financial Education from Interactive Brokers\",\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"SearchAction\",\n\t                    \"target\": {\n\t                        \"@type\": \"EntryPoint\",\n\t                        \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t                    },\n\t                    \"query-input\": {\n\t                        \"@type\": \"PropertyValueSpecification\",\n\t                        \"valueRequired\": true,\n\t                        \"valueName\": \"search_term_string\"\n\t                    }\n\t                }\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"Organization\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t            \"name\": \"Interactive Brokers\",\n\t            \"alternateName\": \"IBKR\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"logo\": {\n\t                \"@type\": \"ImageObject\",\n\t                \"inLanguage\": \"en-US\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t                \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"width\": 669,\n\t                \"height\": 669,\n\t                \"caption\": \"Interactive Brokers\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t            },\n\t            \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t            \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t        },\n\t        {\n\t            \"@type\": \"Person\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/31988d9596575a63ddc53e92049a2549\",\n\t            \"name\": \"Steve Sosnick\",\n\t            \"description\": \"Steve is the Chief Strategist at Interactive Brokers. He has held numerous roles in the organization since joining Timber Hill, IBKR\u2019s predecessor, in 1995 as Equity Risk Manager and an options market maker. He developed and implemented automated trading strategies for stocks and options before moving into his current role. Steve has guest authored several columns in Barron\u2019s and made numerous live on Bloomberg TV and Radio, CNBC, Yahoo Finance, Fox Business, and several other media outlets in North America, Asia, Australia, and the Middle East in addition to being quoted frequently in print and electronic media. Prior to joining Interactive Brokers, Sosnick held senior trading roles at Morgan Stanley, Lehman Brothers, and Salomon Brothers, where he completed the firm\u2019s famed training program.\",\n\t            \"sameAs\": [\n\t                \"https:\\\/\\\/ibkr.com\"\n\t            ],\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/author\\\/steve-sosnick\\\/\"\n\t        }\n\t    ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"We Saw a Flight to Quality.  How About a Flight to Crap?","description":"\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment. During uncertain times,...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/48328\/","og_locale":"en_US","og_type":"article","og_title":"We Saw a Flight to Quality. How About a Flight to Crap? | IBKR Campus US","og_description":"\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment. During uncertain times, investors usually seek a lower risk profile for their investments.","og_url":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/","og_site_name":"IBKR Campus US","article_published_time":"2020-06-09T14:41:00+00:00","article_modified_time":"2023-02-10T18:34:03+00:00","og_image":[{"width":900,"height":540,"url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg","type":"image\/jpeg"}],"author":"Steve Sosnick","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Steve Sosnick","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/#article","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/"},"author":{"name":"Steve Sosnick","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/31988d9596575a63ddc53e92049a2549"},"headline":"We Saw a Flight to Quality. How About a Flight to Crap?","datePublished":"2020-06-09T14:41:00+00:00","dateModified":"2023-02-10T18:34:03+00:00","mainEntityOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/"},"wordCount":1007,"publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg","keywords":["AAL","CHK","GNUS","HTZ","LK","XSPA"],"articleSection":["IBKR Insights","Macro","North America","Region","Securities","Text Articles","Traders' Insight"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/","url":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/","name":"We Saw a Flight to Quality. How About a Flight to Crap? | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/#primaryimage"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg","datePublished":"2020-06-09T14:41:00+00:00","dateModified":"2023-02-10T18:34:03+00:00","description":"\u201cFlight to quality\u201d is shorthand for a shift in the market\u2019s tolerance for risk and a gloomier overall sentiment. During uncertain times, investors usually seek a lower risk profile for their investments.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/we-saw-a-flight-to-quality-how-about-a-flight-to-crap\/#primaryimage","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg","width":900,"height":540},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"},{"@type":"Person","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/31988d9596575a63ddc53e92049a2549","name":"Steve Sosnick","description":"Steve is the Chief Strategist at Interactive Brokers. He has held numerous roles in the organization since joining Timber Hill, IBKR\u2019s predecessor, in 1995 as Equity Risk Manager and an options market maker. He developed and implemented automated trading strategies for stocks and options before moving into his current role. Steve has guest authored several columns in Barron\u2019s and made numerous live on Bloomberg TV and Radio, CNBC, Yahoo Finance, Fox Business, and several other media outlets in North America, Asia, Australia, and the Middle East in addition to being quoted frequently in print and electronic media. Prior to joining Interactive Brokers, Sosnick held senior trading roles at Morgan Stanley, Lehman Brothers, and Salomon Brothers, where he completed the firm\u2019s famed training program.","sameAs":["https:\/\/ibkr.com"],"url":"https:\/\/www.interactivebrokers.com\/campus\/author\/steve-sosnick\/"}]}},"jetpack_featured_media_url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2019\/12\/yield-corporate-bonds1.jpg","_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/48328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/comments?post=48328"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/48328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media\/27572"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=48328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/categories?post=48328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/tags?post=48328"},{"taxonomy":"contributors-categories","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/contributors-categories?post=48328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}