US High Yields sharpe ratio has fallen as we expected since late June 2014.

However its now nearing an

oversold level. Take a look below at the actual ratio and its spread to the MSCI World Index.

HOWEVER, with the demand for protection falling hard over the past few weeks, I think we are due for another
risk asset decline in the near-term. The ISKEW index (measures imp vol across equities and currencies) just fell
to -2 st devs from its 60-day average. So Id look to take advantage of any equity sell-off to jump into US High
Yield (e.g. HYG or JNK).