The plunge in tech stock and bond correlations over the last year “mirrors their dramatic rise in 2021,” Colas wrote, pointing to the chart above. When the blue line in the chart crosses above the X ...

A negative, or inverse correlation, between two variables, indicates that one variable increases while the other decreases, and vice versa. This relationship may or may not represent causation ...

“Fixed income has been providing some ballast and hedging benefits through the recent market turmoil, displaying the traditional negative correlation between stocks and bond returns,” he explain ...

The eternal disclaimer: we should never flat-out expect a particular correlation between stocks and bonds, with limited ...

Heightened fiscal, trade, and policy dynamics challenge the performance, stability, and diversification potential of 60/40 portfolios. Read more here.

Trump’s announced tariffs are causing volatility as worries about slower growth, potential resurgence of inflation, and ...

It encompasses a 10-year period that includes up and down markets for both stocks and bonds. Correlation Matrix - Morningstar US Fixed Income Categories Source: Morningstar Direct. Ten-year ...

This challenges the conventional wisdom that bonds should have a negative correlation with stocks during market stress to provide the most diversification benefit. Before I did this analysis ...

The swan dive gave us another opportunity to observe the stock/bond dynamic whereby the correlation starts to increase when stocks are making bigger moves. In general though, it's taken more and ...