Since the most recent global recession began (and the subsequent stimulus measures took effect), many of the relationships between asset classes that have historically guided investment decisions have weakened considerably. The correlation between U.S. equity and bond markets has gone through the roof, an indication of an increasingly liquidity-driven market. Commodities, which have traditionally been embraced for their low correlation with stocks and bonds, have frequently moved in lock step with equities, as demand for many resources is now dependent on the health of the global manufacturing industry (see Five Ways To Give Your Portfolio Much Needed Diversification) . [click to continue…]
Investors returned from a long holiday weekend with an abundance of optimism on Tuesday, as encouraging news from Asia helped to boost markets. Europe, which recently replaced Japan as the unofficial drag on the global economy, surged as well, as confidence in the Greece bailout efforts picked up. In takeover news, Simon offered $10 billion for rival mall operator General Growth, which is currently operating under bankruptcy court protection. [click to continue…]
December has been a quiet month for most equity benchmarks, with the week following Christmas living up to its reputation as one of the slowest of the year. But not all asset classes have gone into early hibernation. One of the most active assets in the final month of the year may also be one [...]
As U.S. equity markets have soared in recent months, the dollar has steadily declined against most of its major rivals, recently falling below the key $1.50 level against the euro for the first time since August of last year. This extended fall has investors wondering if the dollar’s decline reflects temporary volatility, or a long-term [...]
With a roller coaster six months behind us that saw no shortage of interesting twists and turns and unsuspected headlines, we’ve finally reached the midway point of 2009. Ahead of us is the highly anticipated “second half of 2009,” which for months we’ve heard will hold returns to growth, a recovering economy, and enough green [...]
