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Nick Colas and Jessica Rabe on what we've learned this month, Nvidia earnings, the Wawa story

The Compound and Friends

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High Correlation Between Stocks and Bonds Impacting Portfolio Volatility

The high correlation between stocks and bonds, being over two standard deviations above the average, is causing them to move in lockstep on a day-to-day basis. This makes investing more challenging as both assets either work together or fail together, leading to increased volatility in people's portfolios. Unlike the usual trend where stocks go up when bonds go down, currently, both assets are experiencing volatility simultaneously, impacting portfolio stability.

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