Meltup In Stocks Or Meltdown In Bonds?

Two scenarios to put on your radar: Bond prices might melt down if the Bond Vigilantes are roused by the downgrading of the US’s sovereign debt rating and/or the prospect that Trump’s tax-cut bill worsens the federal budget deficit outlook and/or tariff-related inflation. But a bond market meltdown could force Washington to set the US onto a more sustainable fiscal path—a positive end result for bonds and stocks. … The stock market might already be melting up again. … Also: Consumers are worried about tariff-related inflation coming, sentiment surveys suggest, but they’re spending apace nonetheless. And that’s not just spending on stuff in advance of anticipated tariff-related price hikes; they’ve been eating out a lot too.