Cost of Being Wrong Gets Bigger by Day in Ever-Diverging Markets
- S&P 500 keeps rising in face of recession alarms by bonds
- Pre-recessionary rallies all led to big stock losses: Leuthold
Traders work on the floor of the New York Stock Exchange on Friday.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Markets, Boaz Weinstein said this week, are “constantly wrong.” Telling which one is most astray right now has become the big challenge for investors facing conflicting signals across asset classes.
Is it stocks, where an advance previously confined to a handful of tech megacaps showed distinct signs of broadening out this week? A $6 trillion rally hangs in the balance. Or maybe it’s bonds, where emanations of gloom abound and bets on Federal Reserve rate cuts are multiplying in a market where volatility is running twice as high as it was just two years ago.