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Napanee, Ontario | if you wind that chart back another year or so into 2010 and 11, when Benny really started turning up the volume at the party, I would bet you'll see the opposite - reverse correlation. Bond yeilds tanked while everyone was jumping on the commoditiy hedge bandwagon to get out of the way of all that new paper. It was a macro level trend in place.
Now, the grain market micros have taken back over IMO. Sure Benny keeps on printing, but if the Farmers 'print' [plant] more so to speak, which seems to be the market msg from grain boards this season, then grain market fundamentals trump Benny's press, and you have the chart you're seeing. But the typical trade we've seen for the last few years has been sell bonds, buy commodities, equities.. or vice versa. I think it's more like 1234 said - the grain market fundys are making it seem like correlation, when in fact its just coincendec of the grain markets turning down at the same time. | |
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Here's a strange correlation
