Correlations between equities and the S&P 500 are at 80-year highs, indicative of an inefficient market. Jim Bianco, head of Bianco Research, explains how correlations during crisis periods occur due to trillion dollar government interventions.
Bianco also argues that the credit market serves as better indicator of the economy than the stock market.
In his presentation at The Big Picture Conference, Bianco goes on to discuss how we should be more concerned about the deleveraging process. He also discusses how analysts have become increasingly inaccurate forecasters of earnings.
