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.


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By Hubert Marleau

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By Hubert Marleau

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