Bond, Stock Rally Shows Need to Be Prepared (to Be Wrong)
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During the first two World Wars, Boy Scouts sold U.S. bonds to help finance the fighting. If they were still at it today, there’d be a lot of merit badges to pass out globally after every bond market in the world rose in May.
The Scouts never were called upon to sell stocks, and they certainly weren’t needed this month as the MSCI All-Country World Index jumped almost 2 percent and the value of the planet’s equities reached a record $64 trillion. Emerging markets led the gains in stocks as benchmark indexes in India, Russia, Hungary and Argentina jumped at least 8 percent.