2024-01-23 19:55:00 ET
Summary
- One of the most important market relationships in 2024 is the rising, positive correlation between stocks and bonds.
- A rising correlation between these two primary asset classes has profound implications not just for total portfolio diversification in multi-asset portfolios but also forward-looking bond yields.
- The market now looks like one trade, and as bond price declines/yield spikes become a primary risk for equity markets, investors should start looking for alternative portfolio diversifiers.
By Jeremy Schwartz, CFA
One of the most important market relationships in 2024 is the rising, positive correlation between stocks and bonds....
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For further details see:
Bond Diversification Is Falling: Portfolio Implications