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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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, intermediary and offshore hedge funds. Niv takes an active approach in managing client funds and is a firm believer that adequate risk management is paramount in any good investment decision. Niv's work is largely focused on portfolio management, asset allocation, fixed income, managed funds, structured products and developing tailored strategies for the SMSF sector.
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Niv Dagan
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,...
Expertise
No areas of expertise
Niv Dagan
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,...
Expertise
No areas of expertise
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