Today Is A Good Example Of Why The Bond Market Is Smart, And The Stock Market Is Dumb

It’s frequently stated that the bond market is a lot smarter than the stock market (bonds lead, stocks follow, etc.).

It’s probably not the case, really, but today offers up some evidence.

Moody’s downgraded Spain, and stocks are diving. Spain’s IBEX is off 1.4%.

The bond market though? You know the market that should actually be affected by a credit downgrade… is totally ignoring the ratings action.

In fact, Spanish yields are down a touch.

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