{"id":555,"date":"2011-08-31T19:52:29","date_gmt":"2011-08-31T23:52:29","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=555"},"modified":"2011-08-31T19:52:29","modified_gmt":"2011-08-31T23:52:29","slug":"heard-on-the-street-life-in-the-new-macro-world-wsj-com","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/31\/heard-on-the-street-life-in-the-new-macro-world-wsj-com\/","title":{"rendered":"HEARD ON THE STREET: Life in the New Macro World – WSJ.com"},"content":{"rendered":"

Macro issues such as the solvency of European countries and fears of a global economic slowdown have overshadowed fundamental differences between companies. The consequence is that stocks are moving in tandem, indicating a high degree of correlation.<\/span><\/p>\n

Based on one-month trailing movements, S&P 500-index stocks have a correlation of 80%, even higher than the 73% peak reached during the crisis in late 2008, says Ana Avramovic of Credit Suisse.<\/span><\/p><\/blockquote>\n

via HEARD ON THE STREET: Life in the New Macro World – WSJ.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Macro issues such as the solvency of European countries and fears of a global economic slowdown have overshadowed fundamental differences between companies. The consequence is that stocks are moving in tandem, indicating a high degree of correlation. Based on one-month trailing movements, S&P 500-index stocks have a correlation of 80%, even higher than the 73% … <\/p>\n

Continue reading “HEARD ON THE STREET: Life in the New Macro World – WSJ.com”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[57,34],"tags":[837,1549,3018],"class_list":["post-555","post","type-post","status-publish","format-standard","hentry","category-stock-markets","category-us-canada-countries-regions","tag-correlation","tag-gfc","tag-sp500"],"yoast_head":"\nHEARD ON THE STREET: Life in the New Macro World - WSJ.com - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HEARD ON THE STREET: Life in the New Macro World - WSJ.com - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Macro issues such as the solvency of European countries and fears of a global economic slowdown have overshadowed fundamental differences between companies. The consequence is that stocks are moving in tandem, indicating a high degree of correlation. 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Most investments involve a trade-off between risk and return, with higher returns requiring investors to expose themselves to greater risk. But effective diversification allows investors\u2026","rel":"","context":"In "Investment Strategy"","block_context":{"text":"Investment Strategy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/investment-strategy-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13853,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/26\/diversification-the-only-free-lunch-in-investing-2\/","url_meta":{"origin":555,"position":1},"title":"Diversification – the only ‘free lunch’ in investing","author":"ColinTwiggs","date":"July 26, 2014","format":false,"excerpt":"Diversification is often referred to as \"the only free lunch in investing\" because it affords investors the opportunity to reduce investment risk without reducing returns. Most investments involve a trade-off between risk and return, with higher returns requiring investors to expose themselves to greater risk. But effective diversification allows investors\u2026","rel":"","context":"In "Momentum Investing"","block_context":{"text":"Momentum Investing","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/momentum-investing-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3679,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/03\/01\/heard-on-the-street-china-shifts-out-of-dollars-world-doesnt-end-wsj-com\/","url_meta":{"origin":555,"position":2},"title":"Heard on the Street: China Shifts Out of Dollars, World Doesn’t End – WSJ.com","author":"ColinTwiggs","date":"March 1, 2012","format":false,"excerpt":"In the 12 months to June 2011, dollar purchases accounted for just 15% of additions to China's reserves. That confirms hints from Beijing and Europe over the past year that China has ramped up purchases of European debt via Heard on the Street: China Shifts Out of Dollars, World Doesn't\u2026","rel":"","context":"In "China & HK"","block_context":{"text":"China & HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46021,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/12\/05\/investing-and-hedging-in-an-uncertain-world\/","url_meta":{"origin":555,"position":3},"title":"Investing and hedging in an uncertain world","author":"Colin Twiggs","date":"December 5, 2023","format":false,"excerpt":"We live in a time of great uncertainty. The pandemic of 2020 was followed by massive fiscal and monetary stimulus, and expansion of government debt on an unprecedented scale. Inflation followed, caused by supply issues from the pandemic plus a surge in demand resulting from government stimulus and changes in\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Treasury Yield 10-Year\/3-Month Spread","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-12-04-10y-3m.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-12-04-10y-3m.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-12-04-10y-3m.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":865,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/20\/the-beggar-thy-neighbor-correlation-david-merkel\/","url_meta":{"origin":555,"position":4},"title":"The Beggar-Thy-Neighbor Correlation – David Merkel","author":"ColinTwiggs","date":"September 20, 2011","format":false,"excerpt":"There are many reasons proffered for the increase in global equity market correlations \u2014 I would like to offer one more: competitive devaluation of currencies, a.k.a., the race to the bottom. Almost all nations are looking to cheapen their currencies in order to encourage exports. via The Beggar-Thy-Neighbor Correlation -\u2026","rel":"","context":"In "Forex"","block_context":{"text":"Forex","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/forex\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17768,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/01\/22\/cautiously-bearish\/","url_meta":{"origin":555,"position":5},"title":"Cautiously bearish","author":"Colin Twiggs","date":"January 22, 2019","format":false,"excerpt":"In my last newsletter I said: \"We are witnessing the transition from a bull to a bear market......It's time to be cautiously bearish.\" What does \"cautiously bearish\" mean? There are two types of bear markets. First, is the October 1987-style blow-off, where the market goes over a cliff into an\u2026","rel":"","context":"In "Stock Markets"","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=555"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/555\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}