Equities are extending their gains past support by means of correlation of LIBOR 1mth and the US CPI inflation
. Although this is not the usual graph components, there is a clear correlation between the three on the runup to the event on Oct
15th, since then inflation
has begun to fall and LIBOR is pricing other than a continued bull
run by equities
- Dollar Index also shows the very rapid appreciation of dollar against other currencies, I feel this supports the message that something has to give, there is very much a growing divergence between US equities and the stage at which the global economy is at.