Wells Fargo's Schumacher: Market backdrop became 'too sanguine, too quickly'

• A 'disconnect' exists between the stock market rally, crude oil drop, and bond yield movement, with bonds and oil showing less recovery.
• Schumacher believes the market is 'sounding the all clear' too quickly, suggesting higher prices for insurance (volatility) are warranted.
• He interprets recent Fed minutes as 'slightly dovish,' making a rate hike 'incredibly unlikely,' and notes the Fed's concern for the job market.
• High mortgage and gasoline prices contribute to a 'misery index,' with limited long-term solutions from the Fed or Treasury to significantly lower rates.

Michael Schumacher of Wells Fargo Securities discusses a disconnect in market reactions, noting that stocks, bonds, and oil have not moved in unison. He believes the market is 'too sanguine' too quickly, despite the Fed's dovish stance in recent minutes, and highlights ongoing concerns about inflation, job market weakness, and high mortgage rates.