Stock Bond Correlation

Inflation is a dominant force in the economy. Everyone's worried about inflation to some extent. This was the case basically coming out of the 1780s, even a few more years afterwards. But since around 2000 onward, last two decades, inflation has been very muted. So much so that we sort of stopped worrying about it. In this environment, you know, cash flow dominates, which benefits stocks and positive cash flows, shock benefits stocks. And this is an environment that's perfect for a negative stock bond correlation and perfect for a strategy that tries to exploit these negative correlation.