Now raising intellectual capital
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.