Bond market = "smart" market
I keep hearing the various pundits say that the bond market is the “smart” market, as opposed to the stock market (being a more “dumb” market).
For example for the past few months the bond market was going up but at the same time the stock market was also going up. The pundits were saying “don’t listen to the stock market, better listen to the bond market which is the smart market, and so the bond market is right.”
I am wondering why that is? Why is the bond market considered smarter than the stock market?
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