Sunday, August 19, 2012

What happens when all markets and asset classes are in correlation?

The presentation below is courtesy of Barry Ritholtz of The Big Picture.  As Barry point out below, stock correlations are at an all time high.  What does this mean?  It means that there are really no safe places to hide.  Many people found this out the hard way in 2008 when they thought that they were protected being in real estate, commodities, or even gold.  Only to see all of those assets go down with the overall market as well.

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