Baby Boomers

The four major asset markets are tied together through several key relationships.  Stocks and bonds are typically inversely related.  When bond prices rise stock prices usually fall as investors shift money to bonds instead of stocks. When commodities rise, equities typically do the same. Basically, a positive macro environment increases demand for both commodities and equities. Finally, the U.S. dollar should be inversely related to stocks and commodities.  A falling U.S. dollar implies an inflationary environment, which helps both commodities and equities.  A rising U.S. dollar implies the opposite, a disinflationary or deflationary environment. The rally since 2009 is missing most of these typical relationships. The Checklist Let's do a checklist of what usually is occurring in a rising equity markets (NYSEARCA:VTI) environment as has occurred since 2009.  Bond prices should be down? They aren't. The dollar's value (NYSEARCA:UUP) should be declining (as it did during the equity boom...

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