As I am typing this, equities are blasting higher across the board. That is undeniable. However, bonds just aren’t buying it. The bond market tends to be quite a lot shrewder than equities, and I think it’s worth noting that bonds basically topped out late in 2023 and have been meandering more-or-less lower ever since.
Using the layered chart mode, you can see how the spread between TLT (blue line) and SPY (green line) has become vast indeed. This gap, I believe, will close: the question is whether it’ll close by way of a soaring bond market or a plunging stock market.
