I am not telling anyone anything new saying that bonds and stocks are inversely correlated. However if you look at this chart you will see how much stocks have out performed bonds and if the fed ever does take its foot off the gas how a simple mean reversion would lead to a 10% correction (more…)
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Tim put some great unrelated comments into my last post about the USD/JPY. I wanted to comment on mean reversion if you want to trade the dollar yen with etfs instead of trading the actual FX as some people might prefer etf instead. This is the inverse of the chart Tim posted and shows that there is about 5% to be made if the dollar strengthens further against the yen UUP_FXY