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Bond-Stock Correlation Reaches Record High

The correlation between bonds and stocks has never been higher. In a 'normal' world, bond prices and stock prices are strongly inversely correlated (red shaded region in lower pane below) but the last few weeks have seen a massive regime shift (in fact the biggest shft in history) as the entire financial market becomes captured by central bank idiocy. While this is interesting from a historical perspective, the question is "so what?" Well, the last few times that bonds and stocks have risen or fallen together with such co-dependence has not ended well for stocks.
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