After a fairly depressing week of news showing relatively little impact on the equity markets, there seems to be a large amount of optimism still left in the current bull market trend (it’s safe to call this rally a bull market, right?).? A quick glance at the bond market seems to suggest that this week woke some up to the fact that things might be bad enough soon that the Fed might have to actually start cutting rates before too long:? VBMFX is a good example of how prices are sharply up upon this week’s news.? While I’m not a major fan of bonds when there’s several options for money market rates at over 5% and 5.15% right now, it is nice to know that the bond market is aware that this equity uptrend isn’t going to last.? I’m of the opinion that we’re not going to get to finish this bowl of porridge before it gets too cold.? But this is just a gut feeling right now, since the trend still seems to be up (note that 100 point after 2:00 recovery in the DOW on Friday).