Stock and bond investors disagreed materially in their assessment of future economic activity this month. Stock investors were generally optimistic, seeing central bank caution as extending the long recovery and profitability of corporate investments (glass half-full). Bond investors, however, interpreted the same data as confirming even slower growth and downside (glass half-empty). Both views are excessive and the truth lies in between. This divergence spotlights the prospective importance of diversification and avoiding overpriced assets.