Tuesday, July 15, 2008

Out of Treasuries, Into Stocks

The stock markets appear now to have taken the jawboning of Treasury Secretary Paulson and Fed Chairman Bernanke as reasons to be reassured, since they have now turned higher for the day. The flight out of treasuries is occurring simultaneously, so it appears that the two are linked. Note here that these two charts are nearly mirror images of each other.

Dow
Treasuries