SSO - Goldilocks Gets A Check-Up: A Diagnosis And Prognosis

Background - just who is this Goldilocks, anyway?

In a March 31 article, Trump's Right, The Fed Should Cut, But 'Goldilocks' Is Likely Anyway, I defined today's Goldilocks markets this way:

... the Goldilocks scenario: interest rates behave well as the economy slows, but the economy weathers the Fed's stress test of it and stock P/Es expand to catch up with the higher "P/Es" [i.e., lower yields] on corporate and Treasury bonds. Meanwhile, any future Fed easing is held in reserve to support equities if and when needed.

That article was a form of