Bonds vs. Stocks Update
Just a quick update on the bond/stock ratio. One of the reasons I've been so bearish on stocks is due to the fact that I noticed the bond/stock ratio was bottoming. This in my opinion was a sign that money is moving into bonds and out of stocks. A rising ratio line is negative for the stock market and positive for bonds. Today the ratio broke out to a 6 month high. You can read my original post from May 6th which clearly discusses my reasons for being bullish on bonds and bearish on stocks.
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