It Looks Like The US Markets Are Returning To Normal

"Historically, rising equity prices have been associated with falling bond prices (rising bond yields), as stronger economic fundamentals drove investors to stocks and away from bonds, and weaker economic growth produced the reverse," notes Guggenheim Partners' Scott Minerd.

This is the kind of stuff we all learned when we were first introduced to investing as kids.

"However, over the past few years, equity and bond prices began moving together as both markets were inflated by floods of liquidity from accommodative U.S. monetary policy, which distorted the traditional relationship," added Minerd.

Indeed, many pundits spent this time blasting the Federal Reserve for messing up the investment game.

But for whatever reason, it appears that markets have gone back to their old ways.

"After tapering of quantitative easing by the U.S. Federal Reserve was first suggested in mid-2013, markets began returning to more normal correlations, driven not by expectations of continued quantitative easing, but by the economic outlook," said Minerd.