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Inverse correlation between HYG and SPY!

There is a diverging correlation between bond and s&p500 now. Looking at this post, we can see it very clearly. Larry Williams has mentioned this as one of the trading strategy.

Why? Because once the stock gets too expensive and bond gets to cheap, people will shift their money from stock to bond. And this is usually true. We shall see something will happen in a month or less.

This has also been mentioned in investment moat.

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  1. April 6, 2010 at 10:56 pm

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