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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (35258)	11/4/1998 4:48:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 132070

MythMan What do you make of the increasing quality spreads in the bond market. Spreads are steep from treasuries to agencies, from agencies to top quality-corporates and from top quality-corporates to junk. In other words the bond market is risk averse here. One piece of conventional wisdom is that the bond market is smarter than the stock market. By contrast, the stock market is clearly not risk averse here. Also bonds have been generally declining while stocks have gone to the moon in recent days. Seems like money is flying out of bonds into stocks. Can't go on forever. And lastly fed funds (and libor) have been well above 5% target in recent days. Issues to consider. These instabilities won't persist forever.