Generally, the process is more slow and complex. I discuss much of it in The Next Perfect Trade. One market modality to consider is: when stocks go down, we can incrementally expect a slower economy and, thus, lower bond yields. Fund managers don’t necessarily rebalance on the daily basis, but fast money speculators create price action.
CIO, HonTe Investments. Ran global macro at JPM. Yahoo! Finance Contributor. Ph.D. in Mathematics. Author, The Next Perfect Trade. No investment advice.
