Great summary. Interesting that Gold and Silver are starting to catch a Bid. Real Yields are still rising, Dollar is still bullish, and Oil trending higher again. I don’t see the macro reason that the correlations appear to be breaking down. Must just be a value estimate or it’s starting to look past all the headwinds it has been facing the last few months. Any thoughts?
i'd agree that the market is looking past some of these headwinds. when correlations break down it means there is not a single macro factor driving. for example, if growth is in control, we'll see correlations head towards 1/-1 because everything is being thrown around by the same force. when these correlations die down, there's multiple different forces pushing prices around in different assets
Great summary. Interesting that Gold and Silver are starting to catch a Bid. Real Yields are still rising, Dollar is still bullish, and Oil trending higher again. I don’t see the macro reason that the correlations appear to be breaking down. Must just be a value estimate or it’s starting to look past all the headwinds it has been facing the last few months. Any thoughts?
i'd agree that the market is looking past some of these headwinds. when correlations break down it means there is not a single macro factor driving. for example, if growth is in control, we'll see correlations head towards 1/-1 because everything is being thrown around by the same force. when these correlations die down, there's multiple different forces pushing prices around in different assets