Correlation In Rocky Markets Is Never Permanent

in Investing by

[dropcap]T[/dropcap]his article makes an excellent point: there will sometimes be temporary periods of high correlation between stocks when investor fears trump fundamentals. But the key word is temporary. Fear always fades and investors will return once again to fundamentals, thus making the case for diversification.

Read more:

AAII Investor Update: Highly Correlated Stock Returns Are Temporary

Read the full article at Seeking Alpha.

The following two tabs change content below.
Daily Capital
We at Personal Capital have one goal in mind: to build a better money management experience for consumers. That’s why we’re blending cutting edge technology with objective financial advice. We believe this is the best way to empower individuals and their money. Subscribe to our blog and join our empowered financial community.

Leave a Reply

Your email address will not be published.

Disclaimer. This Website may contain links to third-party websites. These links are provided solely as a convenience to you and does not imply an affiliation, sponsorship, endorsement, approval, investigation, verification, or monitoring by PCAC of the contents on such third-party websites. Please be advised that PCAC is not responsible for the content of any website owned by a third party.