It’s even stranger abroad. The yield on 10-year bonds from Portugala country rumored to be on its way out of the eurozone not long agotumbled to a record low of 2.3% last week. That’s down from a whopping 16% in 2012.
Yields have actually tumbled into negative territory in Belgium, Denmark, France, Japan, the Netherlands and Switzerland. Think about that. Investors are basically willing to lose money when they buy these government bonds. And even some corporate bonds, too.
Given the low levels of liquidity in the bond market, it’s scary to think about what happens when the bond bubble eventually pops.
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Related: Tim Geithner says Europe is in worse shape than Japan
Bottom line: Most experts still believe the U.S. stock market will rise in 2015. But with the major averages at or near record highs, it’s hard to blame investors for closely scrutinizing the health of the global economy before jumping in to buy more stocks.
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