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.

2 comments:

Applesaucer said...

Spot gold and the mining shares have reversed pretty hard.

Applesaucer

Tsachy Mishal said...

Commodity indices still showing decent gains on ags and copper.