Twice this year we have seen the US equity market become enamored of its own hope-holding, momentum-trapping, liquidity-driven, success while the bond markets (Treasury and High Yield) have remained a little less sanguine. This lack of exuberance among all but the equity players perhaps better reflects the sad reality of fundamentals (as we noted here [5]) or perhaps this time it is different. To wit, the following two charts as a gentle reminder that gravity still exists and where the short-term floors might be...
S&P 500 vs Treasuries...
[6]
S&P 500 vs High Yield Credit...
[7]
Charts: Bloomberg