Former Fed chairman Alan Greenspan told CNBC he is very concerned about the wide spread between 30-year and five-year treasury bonds that is typically associated with ‘the onset of a recession’.

This he says indicates a ‘long-term, very long-term, lack of confidence. And that spread is at the widest level in American history.’ Yet in the same interview Mr. Greenspan makes the case that US stocks are still undervalued. He has always been a difficult man to understand.

Could it perhaps be that investors are predicting that artificially low interest rates can’t last forever? Not such irrational pessimism really…