The correlation machine is broken today in a few ways:
1. Stocks are curled up, writing in the fetal position but yen gains haven’t been particularly impressive
2. Oil is at the lowest in almost 2 years, that’s good for the economy/stocks
3. Bonds aren’t phased and are basically flat on the day. Long-end yields hit long-term lows earlier and that doesn’t feed the them that the end of QE or rate hikes is stoking fear
4. Lower rates and the idea the Fed could hold for longer is valid but it definitely doesn’t fit with the picture in stocks
5. Aside from oil, commodities are all over the place. Copper is actually up 1% while nickel is down 2.45%. Gold isn’t doing anything.
Overall, it’s one of those days where you’re either paying, or getting paid… and you’re not quite sure why.
