Can The Interest Rate / Stock Market Correlation Be Broken?

Stock Market Correlation - The price / yield correlation between debt and equities has strong foundational roots that tie into an investor’s decision making process relative to investment selection. A Bank of America Merrill Lynch research piece from Hans Mikkelsen talks about breaking this correlation. The meaningful question might be: With a potential rate hike coming, can the correlation between QE withdrawal (interest rate hikes) and the stock market (negative price appreciation) be altered?

Stock Market Correlation - Fade the ECB tapering talk, central bankers are not going to raise rates

Fade the ECB tapering headlines, BAML’s Mikkelsen advises. He doesn’t explicitly connect dots, but in the back part of...