Markets continue their grind higher and seem to be unstoppable, but there may be some dark clouds on the horizon. For some reason, bond yields have fallen significantly over the past ten sessions. You would think that after the Fed announced their taper plans, bond rates would have gone up and not down. The bond market may be communicating slower growth ahead, but after such great earnings and the infrastructure bill about to pass, something is just not right. Could it be that bond buyers think that inflation will kill this recovery? Or do they think that earnings have topped and will only go down from here? I am not smart enough to know but bond rates are telling us something very different than what the stock market is telling us. Who will be right?
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