Thursday, June 26, 2008

Bonds and stock correlation

I tried to put the charts for this on the blog but I am not the best techno geek.

If you look at the CRB (commodities) CRB Chart they topped out at 325 in '81 and slide down to about 180 by 2001

30year bonds were at 48 in '82 the start of the equity market and topped out last year at 120 Bonds chart

Now were are seeing the CRB on a tear with the equities getting soft and bonds getting soft. So you can see the correlation.

While you get days like today when the market is dropping hard and the masses look to perceived safety by running for bonds, the long term correlation is there to be seen.

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