Too Early To Signal a Pivot?
Real Vision: Finance & Investing
00:00
The Correlation Between Stocks and Bonds in an Inflationary Environment
The correlation breakdown between the two asset classes has been quite remarkable, probably as a consequence of inflation. What happens is markets go sideways to down during these periods and you get significant multiple contraction. And that put on the market is driven by better and better valuations. The takeaway there is what we want to do over time in equities: You just don't invest in the economy when it's going through an inflationary period.
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