SCM: There’s a Bubble Here Somewhere

It appears that U.S. common stocks are now officially in a bear market. What’s really interesting to us though is that the decoupling of Treasury and commodity markets continues. Treasuries are screaming recession, deflation, rate cuts, and risk aversion, while commodity prices, though they have pulled back on recession fears, are still at levels that predict robust global growth. Is one of them a bubble? Or both? Only time will tell. It’s a fascinating dynamic to watch in the meantime.