NFTRH; a curious correlation and more market notes

I was actually looking at the small caps, considering whether or not to short IWM as part of the model portfolio. Then I started fiddling around with ratios and correlations and nerdishly distracted myself. What I came up with is this uncanny correlation of small cap performance and the 30yr Treasury yield, which is the yield in our long-term monthly ‘Continuum’ chart (appears in this … Continue reading NFTRH; a curious correlation and more market notes

Two important macro indicators remain intact

Junk-related credit spreads and inflation expectations remain tame and aloft, respectively Both of these indicators are intact to the inflation that the Fed created and by extension, the widespread speculation that the Fed also created and is trying to shove back in a box currently. As noted back December, the Fed is not directing markets but indicators like these are. It is not only status … Continue reading Two important macro indicators remain intact