Posted by lessarda on 19th of Jul 2011 at 03:11 pm
more likely to see lower stock and bond prices together if the
correlation shifts, given the long-term cycle in rates near a turn
now and the 'trading range' or secular bear in equities likely to
continue to 2016 or so.
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Long term $USB/$SPX chart...
T-bond prices rather than yields are moving with stock prices this week...
Posted by lessarda on 19th of Jul 2011 at 02:32 pm
correlations have changed repeatedly; too early to say this is a change, but the inverse correlation has lasted a long time...
Thanks!
Posted by admagazu on 19th of Jul 2011 at 03:08 pm
Thanks!
Of course this wouldn't necessarily mean lower yields for long...
Posted by lessarda on 19th of Jul 2011 at 03:11 pm
more likely to see lower stock and bond prices together if the correlation shifts, given the long-term cycle in rates near a turn now and the 'trading range' or secular bear in equities likely to continue to 2016 or so.