Financial markets witnessed a bizarre milestone last Friday that, by and large, flew under the radar. As reported by the Wall Street Journal, on the same day the yield on the 10-year Treasury hit an all-time low, stocks briefly touched an all-time high.
Such a seemingly paradoxical dynamic is indicative of the wild gyrations of 2016. That even as the world reels from the recent UK vote to leave the EU, US equities have snapped back into record territory.
I am reminded of late 2007 when the S&P 500 hit in all-time high, even as the subprime crisis has already begun and financial markets seemed borderline unhinged. It didn't really "feel" like a record high.
Could it be that American stocks are now seen as a safe haven?