What is Nostr?
NBS /
npub1ydm…5tav
2023-10-28 22:37:55

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.

Author Public Key
npub1ydmg5ndgr9px5ekcxnxaf9ktrcd2scnkx7cf9xrnaxxnea90aevsgf5tav