It turns out that inflation-indexed TIPS are highly correlated with the stock market and the economy. Declining investment returns, sinking stocks, and falling economic growth are all captured in declining real TIPS yields. - Larry Kudlow, October 1, 2001
Hey, at least we've got that going for us.
Source Data:
St. Louis Fed: 20-Year TIPS Yield
Does he suppose his viewers are dim enough to mistake declining yields for declining prices? I rather think he might.
ReplyDeletedearieme,
ReplyDeleteI actually think that was a rare moment of genius from Mr. Kudlow.
That said, look when he said that. It was probably hard not to see the obvious three weeks after 9/11/01. The events were fully visible in the rear view mirror! It's amazing what will show up in it if you just keep looking.
Gallows humor. Sigh.
Have a good weekend Mark.
ReplyDeleteGYSC,
ReplyDeleteLet's Go! ;)