Investors were in good spirits after the long Memorial Day weekend. Rested and refreshed, they showed up Tuesday and bought stocks. The DOW jumped 125 points for the day.
By Wednesday, however, they remembered there’s an imminent crisis emanating out of Europe. Hence, they didn’t buy; they sold. The DOW dropped 160 points…giving back Tuesday’s gains, and then some. Then, yesterday, investors didn’t know what to make of things. They sold. They bought. They sold…the DOW ultimately closed out the day with a 26 point loss.
These days the stock market still gets the most attention. But the real market action is taking place in the boring old bond market. On Thursday, if you hadn’t noticed, yields on the 10-Year Treasury Note fell to 1.53 percent…its lowest level in living memory, or perhaps ever.
Here at the Economic Prism we watched the mass exodus from stocks while in a state of awe. In front of our unblinking eyes, fear was compelling collective man from one danger into a much greater one. Continue reading







