It’s a fairytale equity market.
And with every tale there’s a truth to be told as the story unfolds.
The truth is hidden in the past pre-tending in the futures.
Bonds N’ Blondes
The bond market isn’t exactly Goldilocks either.
(Remember, the Goldilocks principle is a measure at the margin. Being “just right” is measured at the extremes, which means, therefore, that getting it “just right” is a function of manipulating the existence–what is measured, stressed, and tested–at the margin. Manipulating the margins yields the “Goldilocks effect.” Psychologically, it anchors-in what “normal” is.)
Normally there’s a rotation in and out of stocks and bonds, but with “the new normal” it appears the asset class has succeeded in out-classing itself.
Waiting for a retail investor to show up and eat the porridge and sleep in a bed that’s “just right” is, well, just a fairytale.
The problem at this point is more about the new normal. Measures used to test what exactly “just right” is tends to yield more, exactly, to resisting what’s wrong with the story to be told and the lesson pretending to be learned.