Newspaper article St Louis Post-Dispatch (MO)

Stock, Bond Markets Running in Lock Step

Newspaper article St Louis Post-Dispatch (MO)

Stock, Bond Markets Running in Lock Step

Article excerpt

Stocks and bonds are running together in a marathon where the mileposts have been a series of record highs for equity indicators and record lows for interest rates.

There doesn't seem to be any end to this race or partnership. Although the financial markets occasionally look like they're parting ways - as they did at least twice this past week - analysts say they will continue to travel in tandem because the factors that have kept stocks and bonds side-by-side for months remain in force.

"Stocks and bonds should move in fairly close lock step through 1994," predicted Elliott Platt, director of economic research at Donaldson Lufkin & Jenrette Inc.

An extended buying binge in the bond market has driven interest rates to unprecedented low levels and reflects investor beliefs that slow, steady economic growth will be accompanied by mild inflation indefinitely.

William V. Sullivan Jr., a senior vice president and director of money market research at Dean Witter Reynolds Inc. …

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