Today’s diagram reveals the close relationship of the S&P500 and the Ten Year Treasury Note. Of course, these two separate wealth mediums should be highly correlated, but their prices are the inverse of each other. Yet their recent closes are succinctly parallel.
However, more important, is the near stability of these two prices. Could it be that the financial world’s caution hesitates to commit its portfolio until it becomes more familiar with the policies and initiatives of the new Federal Reserve Chairperson?
Similarly, could Janet Yellen be observing similar caution –and not implement new policy measures – until the market absorbs the possible impacts of the new Fed leadership?
DJIA .53 percent
NASDAQ -.03 percent
S&P500 .32 percent
