After several months of discord, the U.S. bond market is finally returning to a state of normalcy. Plunging yields and runaway bond prices, coupled with the inversion of a key yield curve, were a source of angst for investors in much of 2019. However, the bond market’s return to health is great news for stock investors and for those worried about the economy, as I’ll explain here.
This year’s stratospheric inflation of bond prices (and corresponding yield collapse) was driven by an assortment of geopolitical and trade policy fears, ranging from the U.S.-China trade war