November 16, 2017
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- Income Report Card
November 13, 2017
November 9, 2017
- All Posts by Nathan J. Rowader
Correlations continue to rise, indicating a strengthening macro trend likely related to falling interest rates. This correlation trend is counter to the idea of a reflation trade, which is showing up in momentum trends. This could be an important indicator, but it will require some type of confirmation across different indicators before we can draw any conclusions.
The correlation figure measures how each asset return moves in relationship to the broader basket of asset returns listed on the X axis. When correlations are high or rising, it may indicate that economic movements and sentiment are driving the majority of returns, which could potentially make security selection challenging.