By Kevin McElroy:

As part of my continued series on this world-gone-mad - I'd like to point out a commodity trend that simply doesn't make any sense.

For decades and in fact, for almost the entire history of the American stock market, commodities and the Dow Jones Industrial Average Index moved inversely to each other.

In other words, when stocks go up, commodities usually go down.

You've probably seen this chart - which shows the inverse relationship:

I've posted this chart probably a dozen times in the past few years.

And while it's somewhat out of date - until the past 18 months or so, this inverse trend between stocks and commodities was still pretty accurate.

But something happened over the last few years that has coupled nearly every asset together. Almost everything is correlated.

Here's the Dow again, charted alongside a commodity index for the past 2 years:

That's pretty remarkable correlation


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