{"id":585,"date":"2011-09-01T14:52:50","date_gmt":"2011-09-01T18:52:50","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=585"},"modified":"2011-09-01T14:52:50","modified_gmt":"2011-09-01T18:52:50","slug":"on-high-correlations-seeking-alpha","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/","title":{"rendered":"On High Correlations &#8211; Seeking Alpha"},"content":{"rendered":"<blockquote><p><span style=\"color:#008080;\">If the time horizons of investors are predominantly long, correlations on assets should be low in the short-run, because investors don\u2019t make decisions to trade off of short-term macro factors. But when a large part of the investor base is skittish and is always running to or from the latest bit\/byte\/bite of data \u2013 that leads to high correlations.<\/span><\/p>\n<p><span style=\"color:#008080;\">ETFs aren\u2019t necessary for high correlations, but they seem to help the process by creating easy ways for people to implement decisions that are a simple idea. \u201cI want financials, I don\u2019t want energy, buy the long bond, sell gold.\u201d<\/span><\/p>\n<p><span style=\"color:#008080;\">Thus high short-term correlations indicate a momentum mindset in the investor base.<\/span><\/p><\/blockquote>\n<p>via <a href=\"http:\/\/seekingalpha.com\/article\/290966-on-high-correlations?source=email_authors_alerts\">On High Correlations &#8211; Seeking Alpha<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If the time horizons of investors are predominantly long, correlations on assets should be low in the short-run, because investors don\u2019t make decisions to trade off of short-term macro factors. But when a large part of the investor base is skittish and is always running to or from the latest bit\/byte\/bite of data \u2013 that &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;On High Correlations &#8211; Seeking Alpha&#8221;<\/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":[839,1280,2336],"class_list":["post-585","post","type-post","status-publish","format-standard","hentry","category-stock-markets","category-us-canada-countries-regions","tag-correlations","tag-etfs","tag-momentum"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>On High Correlations - Seeking Alpha - 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=\"On High Correlations - Seeking Alpha - the patient investor\" \/>\n<meta property=\"og:description\" content=\"If the time horizons of investors are predominantly long, correlations on assets should be low in the short-run, because investors don\u2019t make decisions to trade off of short-term macro factors. But when a large part of the investor base is skittish and is always running to or from the latest bit\/byte\/bite of data \u2013 that &hellip; Continue reading &quot;On High Correlations &#8211; Seeking Alpha&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2011-09-01T18:52:50+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"On High Correlations &#8211; Seeking Alpha\",\"datePublished\":\"2011-09-01T18:52:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\"},\"wordCount\":128,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"correlations\",\"ETFs\",\"momentum\"],\"articleSection\":[\"Stock Markets\",\"US &amp; Canada\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\",\"name\":\"On High Correlations - Seeking Alpha - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2011-09-01T18:52:50+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/01\/on-high-correlations-seeking-alpha\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"On High Correlations &#8211; Seeking Alpha\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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Almost all nations are looking to cheapen their currencies in order to encourage exports. via The Beggar-Thy-Neighbor Correlation -\u2026","rel":"","context":"In &quot;Forex&quot;","block_context":{"text":"Forex","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/forex\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6395,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/07\/reid-eurozones-2013-nightmare-scenario-business-insider\/","url_meta":{"origin":585,"position":1},"title":"Reid: Eurozone&#039;s 2013 Nightmare Scenario &#124; Business Insider","author":"Colin Twiggs","date":"December 7, 2012","format":false,"excerpt":"In his 2013 outlook, titled\u00a0In Authorities We (have to) Trust, Deutsche Bank credit strategist Jim Reid warns that Europe is headed for tough times in 2013. Matthew Boesler at BusinessInsider writes: Reid highlights three major issues. To start, European stocks \u2013 and stocks in markets around the world, for that\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":828,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/09\/19\/chart-of-the-day-decoupled-from-reason-macrobusiness-com-au\/","url_meta":{"origin":585,"position":2},"title":"Chart of the Day: Decoupled from reason &#8211; macrobusiness.com.au","author":"ColinTwiggs","date":"September 19, 2011","format":false,"excerpt":"First, from long term successful commodity trader Peter Brandt: It has come to be known as the \u201crisk-on\/risk-off\u201d or \u201call-one-market\u201d phenomena in global markets. It is a situation where seemingly unrelated markets have taken on an historically high correlation. Individual markets seem to be the proxy for all other markets.\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":21375,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/09\/02\/lt-trends-population-ageing\/","url_meta":{"origin":585,"position":3},"title":"LT trends: Population Ageing","author":"Colin Twiggs","date":"September 2, 2020","format":false,"excerpt":"Part of our investment strategy is to identify long-term trends that are likely to shape future investment markets. We are currently conducting an assessment of how current developments may impact previously identified trends. This is the first in a series of updates covering major trends. Investment Strategy: LT trends Many\u2026","rel":"","context":"In &quot;Africa &amp; South America&quot;","block_context":{"text":"Africa &amp; South America","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/africa-south-america\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5995,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/04\/on-investment-time-horizons-seeking-alpha\/","url_meta":{"origin":585,"position":4},"title":"On Investment Time Horizons &#8211; Seeking Alpha","author":"Colin Twiggs","date":"November 4, 2012","format":false,"excerpt":"David Merkel observes that Shiller's CAPE10 ratio and Tobin's Q-ratio both \"indicate that stocks are not likely to return a lot over the next 10 years\". The CAPE10 ratio is a long-term, smoothed PE-ratio first popularized by Yale Professor Robert Shiller in his book Irrational Exuberance. CAPE10 compares the current\u2026","rel":"","context":"In &quot;Earnings &amp; Dividends&quot;","block_context":{"text":"Earnings &amp; Dividends","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/earnings-dividends\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26048,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/05\/29\/the-outlook-for-key-sectors-and-asset-classes\/","url_meta":{"origin":585,"position":5},"title":"Outlook for key sectors and asset classes","author":"Colin Twiggs","date":"May 29, 2021","format":false,"excerpt":"Exchange-traded funds (ETFs) are a useful tool for analyzing growth in competing sectors. We generally use the largest one or two ETFs by market capitalization in each sector. First, let's start with Growth\/Value and large Caps\/Small Caps and analyze how they have been impacted by recent interest rate and inflation\u2026","rel":"","context":"In &quot;Copper&quot;","block_context":{"text":"Copper","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/copper\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/585","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=585"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/585\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}