Sentences with phrase «decline in stock correlations»
The decline in the market appears to have coincided with the publishing and circulation of a research note from JP Morgan strategist Marko Kolanovic, who among other things noted that the recent decline in stock correlations we've seen mirrors action investors saw before big sell - offs in 1994 and 2001.
https://www.thewealthadvisor.com/ Not exact matches
With correlations having become positive, the rise in bond yields likely will lead to a decline in stocks.
Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates; stocks rising amid a persistent decline in earnings growth; bonds, gold and stocks moving in unison, etc., etc.).
The current decline in market correlations started following the US elections and was largely driven by macro (rather than stock specific) forces.»
Correlations between stocks and equity sectors, for example, have declined markedly in the U.S. and Europe, our research shows.
«Over the past year, correlation of stocks and sectors declined at an unprecedented speed and magnitude,» Kolanovic wrote in a note to clients.
Lenders identified a clear correlation between the construction of water mills and the decline in salmon stocks.
These long - term correlation trends will need to reverse if investors expect international developed markets to hold up in the face of meaningful declines in the U.S. stock market.
That argument is that since correlations in the U.S. equity market are declining (perhaps as a consequence of the Federal Reserve tapering its support of the Treasury market), stock selection strategies will perform better than in a more macro-driven investment environment.
However, for the U.S. stock sectors shown in the bottom two rows of graphs, the correlations have trended downward for many years and have declined substantially.