Showing posts with label Commodities Gone Wild. Show all posts
Showing posts with label Commodities Gone Wild. Show all posts

Monday, May 4, 2015

Commodities Gone Wild

The divergence between the prices of crude oil vs. precious metals is counterintuitive, because there is roughly an 80% correlation over the long-term--not an inverse relationship.

Perhaps regression to the mean is occurring after bouts of overshoot/undershoot.

http://www.zerohedge.com/news/2015-05-04/commodities-gone-wild