Stocks and Bonds Are Sending Different Messages. One of Them Is Wrong.

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Stocks have embraced the concept of a soft landing so far in 2023. Bonds are trading like a recession is nigh. Only one can be right.

What soft landing, we can hear you say? The


Dow Jones Industrial Average


after all, finished the week down 2.7%, while the S&P 500 slipped 0.7%. But the


S&P 500


is still up 3.5% this year, and the


Nasdaq Composite


which rose 0.55% this past week, has gained an even more impressive 6.4% in January.