If you ever needed more proof that financial markets have become disengaged from the real world, let alone the economy, here it is.
Equity markets may have to come to terms with no longer being the sacred asset class around which the entire monetary policy framework revolves. I just don’t see a single central bank changing their plans based on recent price action. Stock traders undoubtedly feel like the character Bart when facing a hostile crowd in Blazing Saddles and Reverend Johnson says, “Son, you’re on your own.” Of course, if the analogy is apt, shares will eventually see new highs. Famous last words, I realize.