May 2014 Commentary

May 2014 was truly one for the record books. U.S. large cap markets posted multiple new intra-day and closing highs (6 for the S&P 500 after 45 during 2013) while yields on 10-year U.S. T-bonds fell below their 2.5% post-Bernanke ‘taper tantrum’ of May 22, 2013. On the surface, it seems unimaginable to enter the 6th year of an economic recovery and have stocks reach record highs while yields hit 52-week lows, serving to flatten the yield curve…