S&P 500 vs TED Spread

From Bloomberg tonight, the S&P 500 vs the TED spread over the last few years. When the two diverge it isn’t usually for long, and they recently diverged. If the past holds, the path forward is lower in the S&P. Or lower in the TED Spread. Either one, really.

Ted spread

 

Comments

  1. Isn't the TED spread flawed? I read somewhere that the banks did not report the correct interest rate, I think that was pretty recent.