And We Have Recoupling, As Credit Wins Over Equity As Always
The decoupling between bonds and stocks had many perplexed for a while, as some openly mused whether stocks may be correct over credit, in the first instance ever where credit was wrong and stocks were right. Well, things are back to normal. The bond-stock divergence has finally collapsed (as has the whole Schrodinger Cat paradox about [in|de]flation. The latter won, and all those claiming stocks are the proper indicator now, have been proven wrong. Our simple observation: signals sent from credit will always, and forever, win over equities. Always.To all those who put the convergence trade on, it is time to take your patient, and well-deserved profits.
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