Bonds Flash a Warning; Stocks Say 'Take a Hike'As everyone knows, the bond market and the stock market tend to move inversely to each other. As stocks rise, bond prices fall and bond yields rise.
As stock market prices fall, bond market prices rise and bond market yields falls. This is simply a reflection of the flow of capital between "risk on" and "risk off" assets and tends to be reliable over long time frames. However, in today's central bank influenced, Wizard of Oz economy, interesting divergences are now taking place between the bond market and the stock market.