Interesting aspect of today’s trading: Commodities rallied, the dollar sank, the euro rallied, and stocks... fell.
Now, if there was any news today, it was the new paper from Fed Governor James Bullard, arguing that The Fed ought to get way more aggressive about staving of a Japanese-style deflationary lost decade.
In theory this should have been good for stocks (and we know the market took it seriously, because the dollar got whacked), but instead stocks sank.
It’s not like Bullard said anything that should have surprised anyone regarding the real economy. So it’s a bit of a head scratcher, and if you’re of the bullish persuasion, perhaps a reason to worry?