Is The Market Just Plain Nuts?

No. Higher rates are being trumped by strong earnings

Month after month, the stock market within weeks. Traditional valuation yardsticks prove useless. And in recent weeks, stocks smashed through a barrier that conventional wisdom says should have stopped them dead in their tracks: higher interest rates. The yield on the 30-year Treasury bond is more than 40 basis points higher than it was in early December. Rather than swooning in sympathy with bond prices, however, the Dow Jones industrial average has vaulted 240 points since Dec. 2. And in the first 10 trading days in January, it broke six new records.

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