Can someone please explain the relationship of bonds to that of
stocks, commodities and US dollar? TBT (2x ultra bond short)
broke out of the triangle pattern that matt had on the watchlist a
few weeks ago. From what I understand, this could be a
leading indication of interest rates to increase over
time. How are bonds related to stocks, commodities and US
dollar? Everything seems to be going up and bonds are going
down. I understand the importance of rates increasing, but
not how it correlates with stocks, emerging markets, commodities,
and US dollar.
True, but one of the the more obvious points of relationship is
that as interest rates go up fixed income becomes a more attractive
alternative to stocks - viz recent money market rates.
Bonds relationship to Stocks and Commodities
Posted by amp43679 on 5th of Apr 2010 at 10:46 pm
matt/steve/breakpointtrade member
Can someone please explain the relationship of bonds to that of stocks, commodities and US dollar? TBT (2x ultra bond short) broke out of the triangle pattern that matt had on the watchlist a few weeks ago. From what I understand, this could be a leading indication of interest rates to increase over time. How are bonds related to stocks, commodities and US dollar? Everything seems to be going up and bonds are going down. I understand the importance of rates increasing, but not how it correlates with stocks, emerging markets, commodities, and US dollar.
Thank, amp43679
Title: Too complex a subject
Posted by brophy on 6th of Apr 2010 at 07:15 am
Try reading about the subject...John Murphy "Intermarket Analysis" is a good start.
THE MORE YOU LEARN THE MORE YOU EARN.
True, but one of the
Posted by bkout3 on 6th of Apr 2010 at 09:54 am
True, but one of the the more obvious points of relationship is that as interest rates go up fixed income becomes a more attractive alternative to stocks - viz recent money market rates.
thanks for the posts.
Posted by amp43679 on 6th of Apr 2010 at 03:33 pm
thanks for the posts.