There was no place to hide last week, save for the U.S. Treasury-bond market, which rallied on expectations of a weakening economy and lower short-term rates. Not so global equity markets, which have become increasingly linked. The S&P 500 has a higher correlation than ever before with major overseas stock markets, including emerging markets, according to Morgan Stanley investment strategist Henry McVey, who speaks of a "Market of One."
Even gold, which historically moved inversely to stocks, dropped 5.9% last week to $642 an ounce.
-Barron's
Sounds like a correlation of non-correlated markets. Isn't that what brought down LTCM? I strongly recommend the book - "when genius failed".
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