Daily Archives: Jan 23, 2020 at 07:15 am EST

Correlations Profile | Major Asset Classes | 23 January 2020

Return correlations for the major asset classes have edged down in recent years, which implies that diversification opportunities have increased, if only marginally. The correlation readings are only modestly softer overall and for several asset class pairings it’s fair to say that nothing much has changed. But reviewing all the key slices of global markets by way of pairwise return correlations shows that the median for this risk metric has slipped, based on a set of proxy ETFs.
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Macro Briefing | 23 January 2020

China locks down a second city to halt spread of coronavirus: WSJ
Coronavirus is threat that will test China’s economy: SCMP
US envoy: slain Iran general’s fate awaits successor if he kills Americans: Reuters
Trump says US growth has slowed because of Federal Reserve: CNBC
ECB expected to keep deposit rate at minus 0.5% in today’s announcement: BBG
Will digital taxes lead to the next tariff war? NY Times
Global economy in ‘sweet spot,’ says Harvard University economist: Bloomberg
Low rates, low inflation threaten central bank independence: VoxEU
Existing home sales in the US accelerated in Dec, close to 2-year high: Reuters
US economic trend still sluggish but continued to edge up in Dec: Chicago Fed