Irish Times: “Stocktake: Outlook for sterling remains murky”By admin_45 in IN THE NEWS
Excerpt from the Irish Times quoting DataTrek Research:
.... "There’s another reason why this market advance looks healthy – declining correlations. Early in the current bull market, between 2009 and 2011, correlations between different sectors were incredibly high – that is, all sectors tended to rise or fall in unison. There was, Datatrek Research noted last week, a “herd mentality”, with investors responding to global central banking policy rather than to specific industry fundamentals.
Correlations remained high but gradually eased over the following years, finally retreating to historically normal levels in 2017. Sector correlations tend to spike during sell-offs as investors run for the hills, but that didn’t happen during the recent pullback. In fact, the correlation between sectors is now lower than it was in January and February, according to Datatrek"....
Read the full article here in The Irish Times!