laughingchartist

Long Term Correlation Chart [20-30 Years View]

SP:SPX   S&P 500 Index
This is comparing between the super trend of the S&P 500 (Cash) index and the US 10 year bond yields.

Previously, for a good 35 years, bond yields and equities shared a strong positive correlation. (1951 to 1986)

Then correlation swung the other way and for the next 37 years, we started seeing negative correlation. Falling yields with equities continuing the advancement.

Question is.. What happens now for the next 30-35 years?

Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? - Luke 14:28
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