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Equities Still Lag Credit
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When the 10-year T-note yields 2.00%, and stock dividends yield 2.00% with a possible earnings and capital appreciation kicker, then comparatively, low interest rates should be good for equities.
Hell, that used to be the assumption all the time. But evidently, there's some yield threshold in T-notes, below which low interest rates become scary for equities instead of beneficial.
'All one market' is a world of topsy-turvy correlations, which can't last forever. But probably we need a cathartic Big Flush to end it.
Fuck yeah equities follow down...just need to work off some temporary oversold liquidity ... nothing drops in a straight line!
the dollar needs to correct down for just a few more days...then it has the potential to really take off given the technical setup! When we take out (UUP 22.70) look out !!
I think we may get SPY 123.60 today or tomorrow. I will be getting very short the market at that level.
Under normal circumstances they would, but when was the last time anything made logical sense?
Do equities follow?
-not in the world of government intervention, manipulation and suppression "policy",
until the tail (risk) wags the dog.
I agree. This should be sustainable in the short term (maybe through 2012) as the real trade wars are just starting to heat up. After that, who knows. If you are playing in the "market", you are in a virtual casino and the house always wins. However, only when physical prices start to seriously decouple from paper prices will TPTB lose control. I am referring to all things of physical value, not simply the PM market. Yes supply chains are vital, and I worry about them moving forward. Hedge accordingly.