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Inflation, Recession, & Economic Hell With Lyn Alden

Lead-Lag Live

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Is There a Correlation Between Stocks and Treasuries?

In the 70s, you would not find a sequence in the 70s where you've had that incredible correlation where stocks are drawing down just like treasuries as yields are rising. The main one that changed there was the structural trade deficit situation. And so that's been a strong catalyst to force the US to run the structural trade deficits and to have these, the positive flow of foreign capital into US markets. So I don't think it factors too much into monitoring fiscal policy angle.

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