I discovered a web site today pragmatic capitalism WEB SITE LINK
It had an interesting graph showing the bond market and stock markets as they have diverged.
Their argument is that stocks are going up based on Stock traders hopes that the world will solve its financial problems. On the other side Bond traders don't think so and this has led to the biggest divergence of the two markets in history. A worrying thought. If Bond traders who specialize in analyzing risk are so far out of synch with stock traders then something is wrong with the stock market right now.
It had an interesting graph showing the bond market and stock markets as they have diverged.
Their argument is that stocks are going up based on Stock traders hopes that the world will solve its financial problems. On the other side Bond traders don't think so and this has led to the biggest divergence of the two markets in history. A worrying thought. If Bond traders who specialize in analyzing risk are so far out of synch with stock traders then something is wrong with the stock market right now.
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