Interesting WSJ column about decoupling amongst various assets:
"Turbulent financial markets are starting to look a little bit like a hoedown gone awry.
The wild gyrations in markets in recent weeks and months are shaking up some of the longstanding trading relationships between different types of financial assets, from stocks to currencies to commodities.
One of the most persistent pairings lately has been between financial shares and energy prices, a waltz where one stumbled and the other soared. Last week, the pair abruptly traded places; they’re still intertwined, but they both began moving in opposite directions.
Meanwhile, other notable links — between the Japanese yen and stocks, for instance, or between oil prices and the dollar — are not as tight as they were earlier this year."
Markets Having A Swinging Time
Trading Relationships In Flux as Old Partners Sometimes Out of Step
JOANNA SLATER and MARK GONGLOFF
WSJ, July 21, 2008; Page C1