The FOMC corrected its statement yesterday -- but when will the Fed correct the bond market.
Thankfully, the Fed shows no sign of bowing to the pundits' scare stories.
Even economists who respect market-based price signals are missing the evidence of more inflation yet to come.
Add another one to the list of risks driving stocks to historic undervaluation.
Misplaced fears of an economic slowdown increase the risk that inflation will speed up.
In growth-sensitive markets now, it's as though the presidential election never happened.
Wishful thinking in the bond market won't keep rates from heading higher.
Undervalued stocks need a catalyst that clears the overhang of tax policy risk.
The bond market just isn't listening if it believes the Fed is going to slow down.
If the Fed follows through, it's good for stocks and bad for the reflation/inflation plays.