Daily Archives: February 24, 2012

Inflation Expectations & Stocks Still Moving In Lockstep

The new abnormal is alive and well, or so it appears. Exhibit A: the stock market and inflation expectations remain joined at the hip. As the crowd anticipates higher inflation, the stock market rallies, and vice versa. This won’t last forever, and earlier this month I wondered if the new abnormal was on its last legs. But for the moment, at least, reports of this relationship’s demise are premature.

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