"The stock-bond correlation switch is the ultimate diversification regime shift."
"You don't have as great a need for alternatives when the correlation is negative. Investor search for diversification should be at a heightened level." Source: BofA, Darren
Big Election Year Q1s Dip April-May Before Gains Last 7 Months.
2024 is 3rd best Election Q1 since 1950 tracking. Historically, there is a dip in April-May before gains till year-ned. There was only 2 losses in the last 7 months of election years since 1950 (2000 & 2008) Source: Ryan Detrick, CMT, AlmanacTrader
As shown by Jeroen Blokland >>> The Ishares 20+ Year Treasury Bond ETF is down 48% since April 2020.
This means investors have realized a negative return of 15% annually on long-duration bonds over the last four years. Moreover, this 'return' was realized with structurally higher volatility and, on average, a positive correlation with stocks. It also means the market for long-duration bonds has to double(!) to erase losses. Source: Jeroen Blokland
$BABA Alibaba free cash flow vs share price
Source: KoyfinCharts
Is the US stock market becoming THE world stock market?
Source: Sam Ro
Equity Risk Premium (the benefit of owning stocks over treasuries) has fallen to its lowest level in 22 years
Source: Barchart, Bloomberg
SP500 Put/Call Ratio has risen to multi-year highs amid the recent market sell off.
Source: David Marlin
CTAs will dump billions worth of stocks over the next week in EVERY SINGLE SCENARIO warns Goldman Sachs
Source: Barchart
