Inflation And Yields: Commodities, Yields, And The Nature Of Inflation – Seeking Alpha 01-23-13

Salient to Investors:

John Overstreet writes:

  • Real commodity prices are highly correlated with equity yields.
  • The most significant breakdowns in the correlation between equity yields and bonds occurs when short-term yields approach or break below 1.0 – as during the Depression, and for the last decade: i.e. the “risk premium” has only spiked when short-term yields start going ZIRP.
  • Consumer prices is a largely political conception – what good does it do to strip out food and fuel?

Read the full article at http://seekingalpha.com/article/1129141-inflation-and-yields-commodities-yields-and-the-nature-of-inflation?source=email_macro_view&ifp=0

 

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