Yesterday was a curious day in markets... The good news ran out of steam and the rally faded... Reality rears its head again? Was it just a bull phase in a bear market, or something more significant? Does the market realise just how deep the crisis has bit into the real economy?

I've been trying to think through what the increasing dis-connect between the financial reality of the looming deep and dark global recession – which is upon us - versus Euphoric Markets, means in terms of opportunities and likely outcomes. The perception gap is wide enough to drive a container ship thru. 

Personally, I remain massively uncomfortable with current stock and bond prices, but can I afford to remain flat/short as Central Bank monetary policy will underpin and support prices? Some analysts are predicting record stock levels later this year. Banks are all saying buy corporate credit. It's all on the back of market distortions created by policy.