economy opposities

Discussion in 'Trading' started by z32000, Nov 13, 2007.

  1. z32000


    can someone please list down all the opposites of what should happen in an economy such as...

    1. stock market goes down, bonds go up
    2. oil goes up, stock market goes up
    3. US dollar goes down, gold goes up


    thanks in advance
  2. Uhm.. right now stocks and bonds are negatively correlated, this is not always the case like most of 2006. Logic can be used to explain both why bonds should be negatively correlated as well as positively correlated. When investors fear recession stocks fall, the fed will cut interest rates and bonds rally. Negative correlation. When bond yields are falling stocks become more competitive. Positive correlation. Correlations can be studied empirically and a number can be found. But this number and the sign of this number is everchanging depending on when u measure. Its all context. To speculate is all u can do…

    The same is true for the other opposites in a smaller or larger degree.
  3. Canadian Dollar up, Canadian Bacon down
  4. I dunno.. lean hogs bottoming here ... should support the bacon ... And CAD is up today.

    Might return to positive correlation.