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This shot says it all – the “all the same markets” hypothesis is still in play. Why bother with diversification when all the markets move in tandem? (Source: Barchart.com) Hat tip to Robert Prechter, who I believe was the first to point out the increasing correlation between every asset class, as far back as 2004. […]
This epic stock market rally has done exactly what it was supposed to do – it’s retraced about half of the losses from the previous crash. It’s got folks feeling comfortable again – while maybe not outright enthusiastic about things, they now believe the carpet is not going to be pulled out from under them. […]
With the markets at a potential inflection point (an inflection point down, in my humble opinion), I thought it’d be fun and instructive to revisit a topic we’ve noodled on a bit lately. Does News Actually Drive the Financial Markets? It’s common knowledge that increasing earnings drive stock prices – with the only caveat being […]
These days, diversification is pointless. You only need one position in your portfolio – because all the markets are trading together. To illustrate this point, check out this chart of the S&P 500 vs. the Dollar Index since Spring 2008: The dollar and S&P – mirror images of one another (click to enlarge). (Source: Google […]
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