Adam Smith Associates - Bond Vs Equtiies
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic & international clients. Views expressed in this article are purely of the author - Mr Rohit Srivastava - a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd
I have no problem noting that US equities rallied from the point bonds bottomed. But clearaly bond market rallies are associated with equity declines [Dow in this case], and the reverse. So the bond market crash [upper half of chart], is associated with a stock market rally since June [Brexit]. However even after bonds bottomed in Dec they have not taken off upwards and equities have so it is a long wait but sooner than later when you see bond prices get a bid again it will cause an equity market decline. It is just history