Global markets are unnerved that Bonds are telling us something. Equities don't like the bond market to be smarter but it always is. The question for equity investors however is whether there is a re-adjustment going on in rates that is positive, an adjustment that is telling us deflationary forces in commodities and labor have the Fed and other global CB's successfully reflated or begin at least getting some lift off?
We think Europe was forced beyond the extreme in January when they effectively pushed 4trn in negative yielding sovereign bonds onto the market via QE. We believe markets are seeing the bond market move ahead of the ECB.
See our analysis via charts this AM and draw the following conclusions with Emerging Money: