Stock Market Correlations
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Stock market correlations are all wrong right now as the market continues to process the Fed announcement from yesterday. Bonds continue to march higher with all the commodities and the stock market. The weaker dollar is driving commodity prices higher. The Fed signaling a reduction in rate increases this year seems to have the markets running. Tomorrow they may realize the Fed is actually signaling their expectation for the economy to weaken this year. Also, the dollar may get a lift when traders realize unlike Europe and Japan at least U.S. interest rates are still positive!
