Thursday, December 26, 2024

Steve’s Barking: If stocks go up, so should Bonds?

 If the stock on the index’s go up, so should bonds go up!!!!
 This is the logic of my crazy mind.
 First of all the yields of the bonds aren’t going, it the cost of the bonds that is going up. Right.
 The money that is buying stock has to come from some where , right! 
 The owner of the bonds sell them to buy stocks to make more money, I’m guessing.
 This seems to be a classic example of supply and demand.
 Big demand for stock the price goes up. The less demand for bonds, the buyers I would assume would ask for a premium to buy bonds. Classic economics or it should be.
 

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