drbagel

Asset Class Correlations

Thanks yuman. that helps.

Asset Class Correlations

I dont understand why treasuries are inversely correlated with the dollar. Can someone explain?

Bonds: No Inflation Threat in Sight

Thank you, very interesting. I am concerned that the credit crunch is distorting the usual inflationary signals seen in the bond market. Investors have fled to treasuries for safety, pushing yields down. Much of the money currently in treasuries was in MBS and other credit products I dont understand and which did not exist during the last round of inflation. Perhaps this keeps the bond market from registering the inflationary trend.

I also wonder if destruction of wealth is really the same thing as destruction of money. Deflation would result from the destruction of money. When people lose money in property value they are losing wealth, not cash.

There is a fascinating disconnect between bond yields and commodity/gold prices. One of these is wrong. I dont know which.