This is likely to be a quiet trading week with an upwards drift.

It was 60 degrees here, and I was out cleaning up the yard, wearing shorts. lol

The artificially low volatility in the stock and bond markets is a symptom of the broad mispricing of risks.

Partly this is because the Fed is raising rates in what can best be described as a ‘low inflation’ environment.

Now, we understand why the Fed is actually raising rates. It is so that they can lower them, when their latest asset bubble bursts, again. 

But the market is reading this as the Fed not being serious about their 2% inflation target. And their vigilance on wage increases again shows how badly they are managing monetary policy.

Top down stimulus and policy management does not work, and has not worked for the past twenty or thirty years or so.