Daily Archives: Jul 29, 2020 at 07:39 am EDT

Are Asset Class Correlations At A New Permanently High Plateau?

The coronavirus crisis reordered many things in economics and finance and you can add asset correlations to the list. After markets crashed in March, followed by a strong (so far) rebound, asset classes have continued to move with an unusually deep and broad degree of unison. High, or at least higher return correlations aren’t unusual around periods of severe market corrections. The question is whether it’s different this time in the sense that the jump in correlations endures?

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Macro Briefing | 29 July 2020

Cornavirus vaccine test on monkeys offers encouraging results: NY Times
Coronavirus aid package legislation remains uncertain in Congress: Roll Call
In today’s Fed meeting, policymakers confront slipping economic momentum: BBG
Fed extends lending program through the end of 2020: CNN
Big Tech CEOs set to testify in Congress today: CNBC
US colleges increasingly opt for online classes this fall: USA Today
Europe considers if a second coronavirus wave is brewing: NBC
US consumer confidence fell more than expected in July: Reuters
Pace of US house price increase slows in May to 4.5% annually: CNBC
Real Treasury TIPS yields remain negative as downside bias persists: