How to Find Meaning Amid the Market’s Sense of Impending Doom

This column has been trying to make sense of the apparent disconnect between the fear on display in the bond market and the high levels of the S&P 500 for months. August seems to have severed the ties between stocks and bonds almost entirely, with long-dated bonds metaphorically screaming in panic, while the S&P lost less than 2%.

Under the surface there is a slightly better link. Bondlike stocks are doing well, while the most economically exposed stocks underperformed. Winners include the utilities, real estate and…


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