Welcome To The New Goldilocks Economy

  • We have reached a new Goldilocks economy in which both stocks and bonds have risen to dizzying heights.
  • Underneath it is a very precarious balance between deflationary forces from overseas and inflationary forces domestically.
  • Both asset classes are priced as if nothing can go wrong and as if this precarious equilibrium will last far into the future. We say: good luck with that.

Welcome To The New Goldilocks Economy