Broken Correlation

At some point higher commodities will be bad for stock prices as it will mean the Fed has to lay off the QE or heaven forbid tighten. I find it interesting that commodities and stocks have decoupled today with commodities higher and stocks lower. I don't think we are at the point where higher commodity prices will be seen as bad but I do not think we are that far away either.


Applesaucer said...

Spot gold and the mining shares have reversed pretty hard.


Tsachy Mishal said...

Commodity indices still showing decent gains on ags and copper.