US Stocks & Inflation... What is the Correlation?

Niv Dagan

Peak Asset Management

It appears that just like the strong correlation between crude oil and equities (currently at ~91%), US Stocks are moving along with inflation expectations…. Just take a look at the below chart from the start of January and the correlation between the two is strong... So does this mean that central central banks will soon start to raise interest rates as global growth picks up? The answer is: unlikely anytime soon, as the Bank of Japan is considering further stimlus and Draghi weighs up further QE. However, as bond yields move higher, markets will also move higher as macro-data improves... watch this space...


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Executive Director
Peak Asset Management

Prior to founding PEAK Asset Management, Niv headed up HC Securities, spent three years growing Halifax Investments capital markets division and also worked on the wholesale desk at Macquarie Bank, servicing a wide range of institutional,...

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