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Addresses the high-yield bonds, or junk bonds, market in the United States, as of November 2000. Impact of a decline in the bond prices; Possibility of economic repercussions should the bonds continue to plummet; Lack of a market for trading and selling the bonds.

Reports on concerns over the fall in bond prices in August of 1998 and the possibility of an inverted yield curve. Downward-sloping yield curve seen as an indicator of recession; Yield curve seen as still having a positive slope; How the 1998 yield curve is difficult to interpret.

Says the bull market in American shares is continuing to defy predictions of its imminent demise. Shares continue to rise because there is no good cause for them to fall; Healthy environment for equity investors; Yields on ten-year Treasury bonds likely to decline from current level; Interest-rate picture relatively benign; Improving corporate earnings; Investors pouring money into mutual funds.