"There's nothing happening here, What its not ain't exactly clear. There's a man with a mic over there, telling me I've got to beware."
with apologies to Steven Stills
The bond market has settled back to the levels of March after another period of stretched reasoning as to why you should own it. The SP is also bouncing around levels routinely traded as March came in like a lion and left like a lamb.
Here on the Left Coast prices, wages and especially real estate are all extremely tight. We cannot find workers and Temp Agencies are offering $500.00 bonuses for referrals. This situation clearly does not extend across the country. As we have contended from 2010 on, QE elasticizes the relationship between asset prices and economic activity. The consequence is a rupturing of the belief system that "The markets are telling us something about the future."
For what its worth, what does waffling around the same place for an extended period of time mean?