Surveillance: Aggressive Cuts with Luzzetti
Bloomberg Surveillance
00:00
The Negative Correlation Between Bond Yields and Stock Prices
From the 60s to 90s, almost the entire period on a rolling 120-day basis had a negative correlation between bond yields and stock prices. So often when yields were going up, it was reflecting inflation having been let out of the bag again,. The Great Moderation Era, as coined by Larry Summers, basically the 20-plus years heading into the pandemic, you had a positive correlation. Even during that era, when yields were Going Up: stronger growth, positive for the equity market.
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