Buy bonds and sell stocks or sell bonds to buy stocks? Sizeable price fluctuation continues today following the announcement of the fourth consecutive month of declining prices at the manufacturing level. The Producer Price Index dropped 0.5%, below the +0.3% expected by the Alex Trebeks of the financial forecasting world. This has all of the contestants asking aloud, in the form of a question, “What is deflation?”. The next pressing issue is whether the Fed will raise rates in June, or September, or? That topic indeed is today’s Double Jeopardy.
