Why stockmarket jitters have not so far spread to the credit market
Bond-holders tend to be less starry-eyed than stock investors. Still, there are reasons to be watchful
WRITING IN JULY 2007, the fund manager and bubble spotter Jeremy Grantham likened the stockmarket to a brontosaurus. Although credit markets were collapsing around him, share prices remained stubbornly high. It was as if the great sauropod had been bitten on the tail, but the message was still “proceeding up the long backbone, one vertebra at a time” towards its tiny brain. It took its time arriving: America’s S&P 500 index did not reach its nadir for another 20 months.
This article appeared in the Finance & economics section of the print edition under the headline “Sting in the tail”
Finance & economics February 5th 2022
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