New York | Count the numbers of markets and economic indicators currently at extreme valuations and positive correlations. Financial markets showed a glimmer of normality last week when stock prices fell and bonds rose. The surprise expressed by market participants is an illustration of just how long investors have been dealing with a market where all manner of assets are correlated and at multi-year highs. We talked about this last week with our friends at BNN in Toronto in a TV hit from Bloomberg TV in New York.
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Markets were abuzz last week over the prospect of a trade war, but we see President Donald Trump’s latest outburst over tarrifs as the opening salvo in the 2020 election cycle. Yet a number of observers are openly wondering if the latest upward move in interest rates is essentially finished and if the next leg for the 10-year Treasury is a bull rally back down to the l