by billb
23. March 2009 11:59
It used to be when oil was up, the market was down and vice versa. Gold, oil and to a certain extent bonds played a great hedge for an equity portfolio. As the market and commodities flattened in 2008, the correlation between many things didn't hold up. Everything went down and down hard. Correlations are starting to return to "normal" as the market quazi stabilizes, or at least as we become accustomed to volatility. With one exception. Energy is moving in near lock step with equities.
Have a look.
These two look like soul mates they're in such sync. This begs a question in my eyes. When does it go back to "normal". I'm sure any historically negatively correlated assets move in lockstep over short periods of time.
Just an observation I thought I'd share.
c09d2839-e221-4eb9-a955-5df8107b1f12|1|5.0
Tags:
ETFs | Markets
Subscribe