Markets gripped by alarming cognitive dissonance

Source: economist.com

Markets are in a bizarre state where optimistic stock prices clash with pessimistic bond signals. Investors in stocks bet on steady growth, but bonds - priced by their yields dropping when demand rises as a safe haven - scream trouble ahead from weak economic data. The article argues this cognitive dissonance could unravel painfully. It matters because everyday investors and economies worldwide hang on these signals, and a snap correction might hit pensions and spending hard.