Happy Talk on a Tough Day

Bill Miller, the record-setting manager of the (LMVTX Quote)Legg Mason Value Trust, and Paul McCulley, resident Federal Reserve watcher and bond fund manager at Pimco, don't generally see eye to eye. Equities typically do best when times are good while bonds are the better bet in times of economic weakness, so it's no surprise that Miller and McCulley often stake out different points of view.

Lately, though, they seem to be finding common -- and optimistic -- ground, which might come as some relief to readers on an otherwise disappointing day for financial assets.

While historically low rates in the bond market have prompted some predictions of a coming slowdown or even a recession, McCulley and Miller both see analysts exaggerating risks and wisdom in the markets. ...