Prior to the monetary stimulus in the United States and Europe, stocks and bonds moved in the opposite direction. If you thought the market was slow, you wanted safe haven assets and you bought yield through low risk government debt or investment grade corporate bonds. Equities would decline. If you thought the economy was heading for a boom time, you sold those low yielding bonds and bought equities.
Prior to the monetary stimulus in the United States and Europe, stocks and bonds moved in the opposite direction. If you thought the market was slow, you wanted safe haven assets and you bought yield through low risk government debt or investment grade corporate bonds. Equities would decline. If you thought the economy was heading for a boom time, you sold those low yielding bonds and bought equities.
Share this Article
Recommended