Classic Quadrant II Day

Earlier this year, I laid out my “Elfenbein Theory to Explain the Entire Stock Market.” It basically describes how interest rates influence the stock market.

Here’s the key matrix:

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I would say that today is a classic Quadrant II day. Bank stocks are doing well, but defensive stocks are in the rear. Short-terms are up not down, but my theory is based on their relative impact.

Again, I’ll stress to not take this as a perfect map of what the market does, but it’s a good way of seeing general market relationships.

Posted by on November 6th, 2015 at 1:11 pm


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