XJO 0.30% 8,099.9 s&p/asx 200

monday trading, page-8

  1. 17,444 Posts.
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    Heres's the question?

    When commodities are falling, equities rise because inputs are cheap and manufacturing(the backbone of any economy) becomes profitable.

    When commodities soar, history shows than equities fall for the inverse reason.

    At the moment both equities and commodities are rising. The only reason can be too much money looking for a home not genuine structural cost/price signals.

    It seems the only scenario we haven't seen is both declining commodities AND equities. Is that next and what would that mean?
 
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