Exhausted markets got a break last week

By spring or summer, we may look back at January as the Great 2016 Head-Fake
  • Many serious people -- and not -- are trying to find Fed-economy-stocks linkage. The Fed did lift from zero in December, but hardly enough to blow up the stock market.
  • Collapsing oil prices have perfect correlation to the stock drop, and it’s hard to argue against causation, but equally hard to believe that crashing prices for energy are bad news for the global economy.

Exhausted markets got a break Friday, which leaves them and us to handicap the future. Stocks are up a little, but bonds and mortgages are holding their 2016 gains: the 10-year T-note at 2.05 percent, 30-fixed loans near 3.875 percent.