The stock and bond markets live in different worlds.  The SPY is at record levels.  The bond market sees things as bad and getting worse.

The Fed and other central banks are ready to ease to prevent an economic slump.  The Fed said its “overarching” goal is to sustain the economic expansion.

The U.S. stocks markets cheered the news, up 2-3% for the week.  Lower interest rates typically means higher equity valuations.

The fall in yields has brought a record $13 trillion of bonds paying below zero.  This has, among other reasons, has created a bullish breakout in gold (GLD/GDX), where many are now bullish, including us.

Oil rose on a lower dollar and rising tensions with Iran.  We have two bullish new trades in the sector.


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