Stocks and Bonds Are Sending Different Messages. One of Them Is Wrong.

Stocks have embraced the concept of a soft landing so far in 2023. Bonds are trading like a recession is nigh. Only one can be right.

What soft landing, we can hear you say? The

Dow Jones Industrial Average

after all, finished the week down 2.7%, while the S&P 500 slipped 0.7%. But the

S&P 500

is still up 3.5% this year, and the

Nasdaq Composite

which rose 0.55% this past week, has gained an even more impressive 6.4% in January.