The perception and the reality of portfolio diversification can turn out very different in adverse market environments.
In a market where every asset class seems to be at the mercy of volatility, investors are left wondering if there are any real safe havens anymore.
For several decades now, the correlation between asset prices has generally been increasing.
If used improperly, statistics and the graphical representation of those statistics can be misleading
How is it that traditional safe haven assets like gold, government bonds and the Japanese yen are all performing strongly this year, just as risky assets like equities, credit and emerging markets are also doing very well?
In this article, we will discuss five key risks to fixed income markets for FY20 and explain their relevance to those allocating to fixed income investments.
And it’s what’s driving the disconnect between bond and equity performance in 2019.
Despite bond yields in many markets getting vanishingly low, inflows to bond funds globally have actually accelerated this year.
The managed fund research company Morningstar recently announced they are splitting their ‘intermediate term bond’ category into two new categories – ‘intermediate core bond’ and ‘intermediate core plus’ bond.
With global bond yields back near the low end of recent ranges, it’s an opportune time to revisit a theme that’s relevant to portfolio construction today – the bond vs. equity correlation.