So have Baa corporate rates. These interest rate moves are slowly turning the tide toward a more positive market outlook. Meanwhile, market price indicators of lower future inflation suggest reduced interest rates ahead. The TIPS spread has narrowed to two percentage points. The slope of the Treasury yield curve is inverted.
Gold is steady and the dollar is strong.
Monetary base growth created by the Fed and MZM transactions demand in the economy are well balanced. And let's not forget that the technology revolution is far from over. We've not yet seen the full impact of the productivity-enhancing technology investment wave on profits. The cyclical element of productivity and profits may temporarily slow, but the long-term cycle is still intact. In fact, it may well turn out that profits in the next year or two will continue to outperform expectations, just as they have in the past.