Category: Quant Insight

Correlations are rising slightly, likely due to the impact of tax reform and the increase in rates. The macro impact of rates, inflation, and taxes could be the big play in 2018. Keep an eye on sectors sensitive to these macro changes for future direction.

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.

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