Relationships between:
- stocks and bonds
- bonds and commodities
- commodities and the dollar.
in an inflationary environment include:
- A positive correlation between stocks and bonds (with bonds usually leading).
- A negative correlation between bonds and commodities.
- A negative correlation between the US dollar and commodities.
In a deflationary environment:
- A negative correlation between bonds and stocks.
- A negative correlation between commodities and bonds.
- A positive correlation between stocks and commodities.
- A negative correlation between the US Dollar and commodities.
