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Stocks and Bonds
This Great Graphic comes from Bloomberg. It is a more complicated look at the relationship between the US stocks and bonds. In particular, we are looking at the S&P 500 and the 10-year US generic yield. There are three separate charts here. The top one is a simply line chart. The S&P 500 is the orange line and the 10-year yield is the white line. This chart has been shown ad nauseam. It is misleading. It shows the two variables on the same chart, but with two different scales. The eye naturally goes to where the lines cross. Eureka: This shows that while stocks rallied alongside with rising yields, but then choked ... (full story)