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  • Commodities & Correlations

    In EJ's latest article, "Deflation Fare Thee Well, We Hardly Knew Ye...," he points to a correlation among commodity indexes that are not normally correlated, and asks the question: What are they correlated to?

    http://www.marketwatch.com/story/sto...-at-mood-swing

  • #2
    Re: Commodities & Correlations

    Originally posted by dummass View Post
    In EJ's latest article, "Deflation Fare Thee Well, We Hardly Knew Ye...," he points to a correlation among commodity indexes that are not normally correlated, and asks the question: What are they correlated to?

    http://www.marketwatch.com/story/sto...-at-mood-swing
    in other words, the markets don't buy the 'recovery without inflation' story... or maybe it's 'inflation without sustained recovery' as ej says.

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    • #3
      Re: Commodities & Correlations

      Long Treasury bond yields are correlated, but why now?

      I think the chart below might help to explain it. Dump Treasuries!

      http://www.jeremiahfilms.com/BlogWat...nomy/903041220

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      • #4
        Re: Commodities & Correlations

        Originally posted by dummass View Post
        In EJ's latest article, "Deflation Fare Thee Well, We Hardly Knew Ye...," he points to a correlation among commodity indexes that are not normally correlated, and asks the question: What are they correlated to?

        http://www.marketwatch.com/story/sto...-at-mood-swing
        It's something that Bob Prechter has been commenting on ....he calls it the "reflation" trade. Same thing happened from the 2002 bottom all the way into the 2008 top... stocks and commodities running together on easy money. Then stocks and commodities went down together on the "deleveraging" trade... both down together. That's the era we are in.

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