{"product_id":"v10-c07-thecrb-pdf","title":"V.10:7 (300-302): The CRB Index\/Bond Ratio by John J. Murphy","description":"The CRB Index\/Bond Ratio\nby John J. Murphy\u003cbr\u003e\u003cbr\u003eVeteran technician John J. Murphy, whose trailblazing work on technical analysis and intermarket\nanalysis are classics of the field, has delved into how bonds and commodities are interrelated and then\nhow bonds and stocks influence each other. Now, he introduces the C RB index\/bond ratio as another\nexample of how these three market sectors interact, allowing us to determine the relative strength\nbetween bonds and commodities.\u003cbr\u003e\u003cbr\u003eIn my last two articles, I examined first the inverse relationship between the Commodity Research\nBureau (CRB) Index and bond prices and then the tendency for bond prices to act as a leading indicator\nfor the stock market. Another way to combine these three sectors is to compare the CRB Index\/Treasury\nbond ratio to equities. The CRB Index\/bond ratio simply divides the CRB Index by Treasury bond futures\nprices:\u003cbr\u003e\u003cbr\u003e...\u003cbr\u003e\u003cbr\u003eWhen the ratio is rising, commodity prices are outperforming the bond market and inflation pressures are\nrising. When the ratio is falling, bond prices are outperforming commodity prices and inflation pressures\nare falling. From an asset allocation standpoint, a rising ratio line also suggests that commodities should\nbe emphasized over bonds. When the ratio is falling, bonds are favored over commodities.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133796872561,"sku":"\\V10\\C07\\THECRB.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_38210985-5b0a-4850-95c4-24d5f649cd3e.jpg?v=1739652746","url":"https:\/\/shop.traders.com\/products\/v10-c07-thecrb-pdf","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}