Tuesday, June 29, 2010
The S&P was down 3.1% today as the market reacted to slowing growth in China, continuing high unemployment, and signs that deflation, not inflation, is the problem de jour. The 10-year Treasury Note now yields less than 3% reflecting that belief. New York Times’ Paul Krugman characterizes this as The Third Depression. John Hussman, the economist turned mutual fund manager, more mildly states that this is a resumption of the recession. Pain management stocks were up 2.4% in today’s down market.