Salient to Investors:

  • Ed Yardeni at Yardeni Research said a common worry was that the drop in bond yields may be predicting economic slowdown.
  • Investors Intelligence’s percentage of bulls is at the highest level since January 2005.
  • The conventional wisdom, at least among fixed-income traders and the smartest stock traders, is that the bond market is always smarter than the stock market about predicting the economy.
  • The Dow Jones Transportation Average is up 9.2 percent in 2014, more than twice the S&P 500 gain.
  • Cowen raised earnings estimates for railroads on robust traffic growth in the first two months of Q2.
  • Wunderlich Securities said per-week hours among trash haulers are near records and well above historical averages even as the number of collection employees is up 1.7 percent.
  • Jeff Kleintop at LPL Financial said bond and stock markets are not in disagreement, and that money has flowed into Treasuries because of low European yields as well as unusual declines in China’s currency.

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