Gary Savage

Deflation Looms

Just curious but how does the price on the 10 year treasury falling from 130 to 119 since the beginning of the year signal rising bond prices?

A more appropriate sign of deflation would be the dollar rising. At the moment the dollar is comfortably below very long term resistance at 80.

Bear Market Rally or the End of the Bear Market?

I would have to agree. The only reason the market appeared to be a leading indicator in prior recesssions/corrections is because it was responding to the Fed pumping money into the system. That's not working anymore. It didn't work in 2000-03 either and that's why the market didn't bottom until a year after the economy had already turned.