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BloombergBusinessWeek/Peter Coy/7-9-2021
“[F]or almost a year now, Bloomberg market reporters have been detecting anxiety from the pros that the era of negative correlation {between stocks and bonds] may be over or ending, replaced by an era of positive correlation in which stock and bond prices move together, amplifying volatility instead of dampening it.”
USAGOLD note: The kind of clear inverse correlation Coy alludes to in this article might not be available when both asset classes depend to a large degree on monetary largesse for value, rather than traditional market forces of supply and demand. Under those circumstances, gold stands out as a true hedge – one disconnected from direct central bank and/or government support. That, perhaps, is why many institutional investors are turning to it as a portfolio alternative.
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