STOCK GOODIES PLAYS OF THE WEEK

[BoomPickens]

This means they both move in the same direction. The world was in an inflationary environment from the 1970's to the late 1990's. These are the key intermarket relationships in a inflationary environment:



A POSITIVE relationship between bonds and stocks

An INVERSE relationship between interest rates and stocks

Bonds usually change direction ahead of stocks

An INVERSE relationship between commodities and bonds

A POSITIVE relationship between commodities and interest rates

A POSITIVE relationship between stocks and commodities

Commodities usually change direction after stocks

An INVERSE relationship between the US Dollar and commodities