Junk bonds are a risky investment because they are so volatile. While a lot of money can be made with them, there is a lot to be lost as well. Junk bonds are also an indication of how an economy is doing based on how many junk bonds are trading in distressed territory. Well, this week there are less junk bonds in distressed territory than at any time in the past three years.

The stock market has been fairing relatively well lately with a 52-week high being reached and many investors hoping that the bad times of the recession are over. However, if one looks at the Volatility Index, there may be some worries as to what is going to happen in the future. Is a stock sell-off coming?