, Columnist
Is Quantitative Tightening Really So Very Frightening?
It’s hard to know if markets today are real life or just some bizarre fantasy. Also, the FAANGs have lost their bite and stock valuations are still too high.
This is the Freddie Mercury market.
Photographer: Fox Photos/Hulton ArchiveThis article is for subscribers only.
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There’s nothing wrong with the U.S. economy. Unemployment is near historic lows, inflation remains under control, and companies continue to generate remarkably fat profit margins. The bond market was widely proclaimed to have entered a secular bear market this year. So, how do we explain what is going on? This is how the main Bloomberg index of U.S. Treasury securities has performed this year compared with the S&P 500 Index: