Commentaries

Now raising intellectual capital

Easy does it on the exuberance

If it keeps going like this, Ben Bernanke will have to give an irrational exuberance speech.

Today, stocks jumped to fresh multi-month highs and Treasury yields climbed after a report on July manufacturing activity made investors feel even more optimistic about the future. Sure, manufacturing is still contracting, but that’s only a minor detail for those convinced that a burgeoning economic recovery is the real deal.

The giddiness helped push the S&P 500 above 1,000 for the first time in nine months and knocked more than a point off the benchmark Treasury note, bringing the yield to 3.64 percent.

If it were just Monday, it would be easy to chalk up the gains to a sleepy summer day of trading in August when second string traders are left in charge. But this stock rally has legs, and long ones at that.

  •