NBS on Nostr: Stock:bond correlations flip positive, last seen positive in the latter half of 2022. ...
Stock:bond correlations flip positive, last seen positive in the latter half of 2022.
This translates to the classic 60/40 portfolio becoming far less risk-averse. This portfolio is 60% stock 40% bonds. Not saying it's a good portfolio because it's not, but it's a popular strategy for long-term investors.
When correlations flip positive, this portfolio is effectively just leveraged long.
Probably a good idea to diversify a bit, although I am quite long bonds now myself.
This translates to the classic 60/40 portfolio becoming far less risk-averse. This portfolio is 60% stock 40% bonds. Not saying it's a good portfolio because it's not, but it's a popular strategy for long-term investors.
When correlations flip positive, this portfolio is effectively just leveraged long.
Probably a good idea to diversify a bit, although I am quite long bonds now myself.