Which is a bigger debate/arguement?…Taste great -vs.- Less Filling or the Dollar and the 500 Index always move in opposite directions?
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Yes the Dollar and 500 index Non-correlate a good deal of the time, yet as can be seen in the above chart, they can highly correlate/trend together as well for extended periods of time too.
I remain of the belief if we can get the currencies correct most of the time portfolio decisions become easier, yet when you see that the Dollar and 500 index can move in the same direction, it confirms that using other patterns are needed to make overall portfolio allocation decisions!
I think this has a lot to do with the productivity. When there is production, everything starts to go up and vice versa.
Everything goes up except my job approval rating.
Yes as the long bond hit 15% and T-bills hit 19%…Stocks and Govt bonds did move higher together.
The linkage between US Bonds and Equities was of a positive correlation a decade or so ago
What was good for US Bonds was good for Equities