AXIOS (Emily Peck) - Bonds worry, while stocks enjoy the "bliss trade"
The stock market and the bond market are telling different stories about the economy: Bonds fear doom, while stocks see boom. Why it matters: That's a bit confusing for investors and policymakers looking to these markets to make decisions — or for anyone trying to get a read on (waves hands) everything. The intrigue: Stocks are betting on what former IMF chief economist Gita Gopinath calls the "bliss trade " — a belief that stocks can keep rallying even as bond investors price in more inflation risk. Zoom in: Central to this thinking is that any real geopolitical shocks will be offset by government spending, Gopinath, now a professor at Harvard University, wrote in the Financial Times. - That's what happened in the 2022 energy shock…