The Stocks/Bonds Relationship: What You Need to Know
After a long period of negative correlation, stocks and bonds are now trading together again. In periods of high inflation, historically, the correlation between stocks and bonds has turned positive. The stocks/bonds relationship has been trending positively since February. Is this an inflation warning? @CME Group presenting:
I don't see the positive correlation right now, though. Bond prices are going down, and stocks keep going up. The positive correlation shown in the graph is between stock prices and bond yields. Can someone explain to me the missing part?
Well that does not explain anything. What is value journalism these days?
You guys did POOR JOB explaining this. On the last weeks bond YIELDS are going up with stocks, not bonds properly. This is paramount to understand the correlation. Bonds are actually being heavily SOLD, that´s why yields are going up.
0:00 SF <3
Market manipulation
SHORT MORE US JUNK BONDS NOW ++++++++++++++++++
ya just dumped 6 trillion into the economy. We owe a whole bunch of money.
where did this money come from? does it sit on a shelf? what happens to the value of the money that's in current circulation?
asking for a friend.
what?????????????–people worried about deflation????????????????????——sounds like central bank propaghanda–just like there is no inflation either huh?
Well, that wasn’t very helpful
Also, as bonds fall, stocks usually follow suit. As borrowing becomes more expensive and inflation rises, it's reasonable to assume that stocks will not do as well
Also, when bond prices begin to fall, stocks usually follow suit and head down as well. As borrowing becomes more expensive and the cost of doing business rises due to inflation, it is reasonable to assume that companies (stocks) will not do as well
Many people understand stocks, but very few understand bonds.
lo que sea quiero mi dinero