, Columnist
An Unreliable Ratio Points to Trouble for Stocks
The correlation between equities and bond yields is again strongly positive, suggesting real concern about inflation.
The stock-bond relationship isn't iron-clad, but it can tell us something.
Photographer: Jeffrey Coolidge/Stone RF/Getty Images
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This is going to be a piece about the relationship between share prices and bond yields, so I had better start with a public health warning. A lot of nonsense has over history been spouted about this link, and it was brilliantly denounced in this article by veteran British economist and fund manager Andrew Smithers in 2006: