BOND/COMMODITY RATIO TURNS UP... Ratio analysis is the best way
to compare two asset classes. Chart 6 shows a ratio of bond prices
(TLT) divided by commodity prices rising over the last week to the
highest level in a year. It's too soon to call that a major bottom.
But it does suggest that the tide may be turning in favor of bonds
over commodities. That's consistent with a weaker economy. And is
usually bad for stocks as well. That may help explain the recent
flight to the safety of Treasury bonds as stock and commodity
prices fell. From John Murphy yesterday. On Stockcharts
for members with more charts too. TLT$GNX is the
ratio Murphy used
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BOND/COMMODITY RATIO TURNS UP... Ratio
Posted by rbreese on 17th of Mar 2023 at 10:43 am
BOND/COMMODITY RATIO TURNS UP... Ratio analysis is the best way to compare two asset classes. Chart 6 shows a ratio of bond prices (TLT) divided by commodity prices rising over the last week to the highest level in a year. It's too soon to call that a major bottom. But it does suggest that the tide may be turning in favor of bonds over commodities. That's consistent with a weaker economy. And is usually bad for stocks as well. That may help explain the recent flight to the safety of Treasury bonds as stock and commodity prices fell. From John Murphy yesterday. On Stockcharts for members with more charts too. TLT$GNX is the ratio Murphy used