Issue 27 – Occam’s Razor: The Bond Market Says Growth Has Slowed, Inflation Is Peaking and Credit Conditions Are Steady

A Snapshot of the Market for the Week Ended July 9, 2021:

In bull markets for stocks, things about which investors should worry often get overlooked, like Occam’s Razor, which is a problem-solving principle which states that an explanation with the fewest of assumptions is usually the correct one. Given that bond traders are the smartest guys in the room when it comes to the economy, it is worthwhile for stock operators to keep tabs on what is going on in the Treasury market. These smart guys know that bond yields broadly track economic performance; but over the short term they also know that changes in prior expectations can be disruptive.

 

Follow us on: LinkedIn

 

By Hubert Marleau

Continue Reading in PDF

By Hubert Marleau

All products and services of Palos Wealth Management Inc and Palos Management Inc. are only available for sale to residents of Canada, unless the laws of a foreign jurisdiction permit sales to its residents. The contents of this site should not be considered an offer to sell or a solicitation to buy products or services to any person in a jurisdiction where such offer or solicitation is considered unlawful.