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:

Michael Canning

Michael Canning

Michael has a Masters's Degree in Leadership and Juris Doctorate. After working in private business for 10 years, he started writing. He covers law, business, startups, and technology. One of his passions is researching disruptive technology in business. [email protected]

13 thoughts on “The Stocks/Bonds Relationship: What You Need to Know

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    March 31, 2022 at 3:13 am
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    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?

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    March 31, 2022 at 3:13 am
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    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.

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    March 31, 2022 at 3:13 am
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    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.

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    March 31, 2022 at 3:13 am
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    what?????????????–people worried about deflation????????????????????——sounds like central bank propaghanda–just like there is no inflation either huh?

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    March 31, 2022 at 3:13 am
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    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

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  • Avatar
    March 31, 2022 at 3:13 am
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    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

    Reply

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