| Commodity prices have been falling while equity prices have been going up. Societe Generale strategist Albert Edwards, the market’s bear-in-chief, thinks this is a warning sign for equity investors, given the strong correlations between the two asset classes in recent years. But is it really?
At a recent presentation, Mr. Edwards highlighted a strong correlation between the performance of global equities and commodities as central banks responded to the financial crisis early phases. In theory, massive amounts of liquidity pumped into the global financial system by quantitative easing and other programs flowed straight into financial assets, boosting prices...............................................Full Article: Source
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