Wednesday links: commodity correlations

22Mar06

The new Fed chairman Bernanke has been talking about the various effects of a global “savings glut” for quite some time. One effect of this has been a near simultaneous rise in nearly every asset class.

The Capital Spectator notes the rising correlation between stocks and commodities. While correlations can shift over time, this time we could attribute the rise in part to the rush of capital into commodities.

Another factor that could be playing a role is that commodities are becoming easier for more investors to trade in and invest. John Spence at Marketwatch.com notes the long-awaited silver ETF has taken an additional step towards a launch.

Speaking of Bernanke, Caroline Baum at Bloomberg.com thinks the chairman would be wise not to badmouth the predictive power of the yield curve in public, lest he have to eat his words at a later date.

Crossing Wall Street has an amusing post up that makes the chairman look like quite a scold.

According to Nicholas Yulico at TheStreet.com a global REIT exchange traded fund is on the drawing board. In contrast to the spate of me-too funds this one would serve a useful purpose.

Random Roger is looking for a few good currency commentary sites.

Jeff D. Opdyke in the Wall Street Journal notes the unique attraction of municipal bonds in today’s interest rate environment.

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