As highlighted in this past week’s Outlook Video, TLT (the long bond ETF) was
The immediate next pivot is 122.54.
As North American indices and bonds grind higher, what is TLT signaling here?
If you ever wondered about the significance between the correlation between stocks and bonds then check out this piece from Pimco:
Investors should care less about how the returns of assets deviate from their trends and more about the trends themselves – particularly when we are considering how bonds will perform in an equity market drawdown or in recessionary periods.
The net-net is that the correlations matter less than the actual trends themselves and for now the trends in TLT and SPY are both up.