Here’s an article that talks about the disconnect between the credit and stock markets that I alluded to yesterday. At some point they’ll have to come back in line – because fundamentally they’re both pricing risk.
Which way will it eventually go? Will the credit market go up or will the stock market go down? Given the headlines (I’ll post another article in a bit with today’s headlines) that the stock market seems to be ignoring, I’m betting that stocks are in for a big drop sometime fairly soon. I don’t know enough about it to predict when, but I think we’re far from the bottom of this downturn in equities. And there’s no way I’m buying anything in the financial sector yet!
gk
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[...] Effor.com wrote an interesting post today on Credit and equity disconnectHere’s a quick excerptHere’s an article that talks about the disconnect between the credit and stock markets that I alluded to yesterday…. Which way will it eventually go? Will the credit market go up or will the stock market go down?& #160; Given [. . . ]… [...]