The recent sudden divergence between the price of government bonds (which have climbed sharply) and riskier securities (which have fallen even more sharply) would have been hugely exacerbated.
Mr. Prince, the Bridgewater analyst, calculates that the divergence between the pricing of stocks and of corporate bonds "is near a 40-year high" because the bond market has priced in plenty of risk of economic disappointment while the stock market sees little risk.
Predictions from the Office for Budget Responsibility estimate a growing divergence between the Consumer Prices Index (CPI) measure of inflation and the Retail Prices Index (RPI) measure.
Yet property/casualty stocks have declined 30% or more this year from their highs, creating a divergence between their stock prices and their asset values — and thus, a buying opportunity.
Despite this fact, Venezuela maintained a fixed exchange rate, thus causing a sharp divergence in prices between domestic goods, which have become increasingly expensive, and imports, which have stayed cheap because of the fixed exchange rate.
"The divergence between core and headline price growth shows that the UK has benefitted from lower global food and energy prices and a stronger sterling in reining in inflation.
The divergence between the private and social prices is a measure of the magnitude of market failure.
From our research on "Oil Speculation" we found a divergence in price between crude oil and "spot oil price" (STP).
Moreover, for those who do have access, there is a high divergence of electricity prices between regions.
