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Chris Evans
  • Chris Evans

Bond Stock Correlation Analysis

​I have had a number of discussions with investment managers who seem to be skeptical of my assertion that stocks and bonds have a very negative correlation on a daily basis. This fact is necessary and used by my gauges to determine prospective bond performance. If the S&P is out of gas, that is bullish for bonds only if there is a negative (short term) correlation. This component of the bond gauge will be a big problem if the two series are positively correlated.

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