Business Insider: “A key historical indicator says the latest stock market rally is poised to push on through the end of the year”
By datatrekresearch in IN THE NEWS
Excerpt from Business Insider quoting DataTrek co-founder
.... "The stock market is in the midst of a strong November rally, and according to DataTrek Research, the gains could last through year-end thanks to a key historical trend.
In a Tuesday note, the firm's co-founders Nicholas Colas and Jessica Rabe point to US large-cap sector correlations as reason for bullishness and investor confidence.
"When [investors] see clear skies ahead, correlations tend to be low as they pick and choose between individual sectors and stocks," Colas and Rabe said. "When investors are concerned that a recession is brewing, whatever the cause, correlations are high because they see too much risk in owning equities as an asset class. Everything gets sold in such an environment"....
Full article here on Business Insider.
