We can’t answer the question we posed in our title. We don’t know what weight the market puts on specific events, but we find some events more interesting than others, and when something happens for the first time in a decade, which is the case in the 2 year treasury yield exceeding the S&P 500 yield, we find that interesting. Unfortunately we don’t believe anyone can tell you with certainty whether or not this event, at this time, is significant. Remember, interesting and significant are not the same.
Fortunately, for us, we are long term investors and don’t have to have an explanation (make an excuse) for everything that happens in the market. We just try to follow the long term trends, and right now all of our Long Term Trends are positive.
