Discrimination between bond funds essential with continuing uncertainty

The Fed's 50-basis-point cut appears to have bailed out stock markets for now. Stock markets seem to...

The Fed's 50-basis-point cut appears to have bailed out stock markets for now. Stock markets seem to have recovered to pre-crisis levels, but credit spreads have not. However, one of these markets is wrong. Are we back to the Russian crisis in 1998, where the stock-market recovery is reflecting that the worst of the slowdown has passed, turned around by the Fed cutting rates? Or are the credit markets right? As in 2000, when the tech stock bubble burst, are today's wide credit spreads indicating US (and global) economic growth is set to slow significantly? Certainly, the Fed's cut in inter...