The rally is copper, gold, oil and Asian stocks bearish for bonds and stocks
Fred Day
Feb. 14, 2007

The bond market and the stock market are nervous about the current rally in copper, gold, oil and Asian stocks. The rally is significant because with weaker economy, it represents the inflation leg of stagflation.

The stock market is real nervous because the rally in copper, gold, oil and Asian stocks creates higher input price while the corporations are struggling because of lack of pricing power of the finished goods and services.

The bond market hates the inflation song. In addition, the Asian central banks are actually fueling the rally to some extent buying fewer US Treasuries.

The higher oil and metal prices are definitely bearish for the stock market. However, the market has acted strange. It did not react inversely with the oil price volatility. Some analysts are already pointing out that Dow is actually behaving bearish in trend.

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The rally is copper, gold, oil and Asian stocks bearish for bonds and stocks
Fred Day
The bond market and the stock market are nervous about the current rally in copper, gold, oil and Asian stocks.. The rally is significant because with weaker economy, it represents the inflation leg of stagflation.
READ MORE>>

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