Jim Bianco, Columnist

Say Goodbye to Stocks and Bonds Moving in Opposite Directions

We may be entering a period when they rise and fall in unison.

February 20, 2018 at 10:00 AM UTC

Jim Bianco is the President and founder of Bianco Research, a provider of data-driven insights into the global economy and financial markets. He may have a stake in the areas he writes about.

Welcome to the new age.
Photographer: Ahmad Al-Rubaye/AFP/Getty Images

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The post-crisis era has been dominated by a risk-on/risk-off trading environment where risk assets such as stocks and safe assets such as bonds move in opposite directions. That may no longer be true.

Some have dismissed the recent spike in volatility as an isolated derivatives debacle rather than a regime shift in trading patterns. Yet, these gyrations are the results of rising inflation fears that are fueling concern that central banks may exit the markets sooner than anticipated.