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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