introspectica

I laughed when I saw this…reminded me of the ever-present, ongoing dance between equities and bonds.

I thought the kitten to be very much like the equity market. The German Shepherd very much like the bond market. And whilst the kitten is cute, it is also completely oblivious to the fact that the big dog is likely to monster it the second it wakes up.

In finance, as in nature, cute counts for very little. On the other hand, fundamental relations on the food-chain count for quite a lot. The bond market has very big teeth – and it’s usually about as friendly to equities as dogs are to kittens. Money flow dominates everything, and bonds have been expressing fairly notable displeasure at the party going on in equities.

Let’s see what happens next.

image courtesy of fffound!