Odd Correlation
By Roger Nusbaum | August 07, 2008 | 9:33 AM | 0 Comments
File this under odd and as a just how the market works tidbit. The relationship of some currencies can tell us things about other markets. One example where I think this exists is with the Australian dollar versus the Swiss franc.
I first heard about this earlier this decade. Some view the Aussie as a proxy for risk taking and view the Swissi as a proxy for safety.
Over the last couple of years there apears that there is something to this.
That they have diverged lately leads me to wonder if we might be in for another feel good rally for equities as I might expect the two to reconverge.
This is something I keep in touch with.
Short post today.
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