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Joe Friday: Bill Gross has used the phrase "new normal" many times this year. Is the chart above an example of the "new normal?"
For the past couple of years, interest rates and base metals have had a high degree of correlation — until June of this year.
Since then interest rates have been in a virtual free-fall and the Base Materials ETF (DBB) has rallied over 20%.
So what does it mean about the macro economy? Slowing economy with inflation? I really don't know and will leave this question for other to debate.
My "just the facts" message from this chart is simple: Follow the price, not some hypothetical correlation expectation.
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