Salient to Investors:
John Overstreet writes:
- Real commodity prices are highly correlated with equity yields.
- The most significant breakdowns in the correlation between equity yields and bonds occurs when short-term yields approach or break below 1.0 – as during the Depression, and for the last decade: i.e. the “risk premium” has only spiked when short-term yields start going ZIRP.
- Consumer prices is a largely political conception – what good does it do to strip out food and fuel?
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