When Investors Rush In, and Out, Together

http://pix04.revsci.net/H07707/b3/0/3/0806180/673570768.js?D=DM_LOC%3Dhttp%253A%252F%252Fwww.themuslimtimes.org%252Fwp-admin%252Fpost-new.php%26DM_CAT%3DNYTimesglobal%2520%253E%2520General%26DM_EOM%3D1&C=H07707%2CH07707http://pix04.revsci.net/H07707/b3/0/3/0806180/363508993.js?D=DM_LOC%3Dhttp%253A%252F%252Fwww.themuslimtimes.org%252Fwp-admin%252Fpost-new.php%26DM_CAT%3DNYTimesglobal%2520%253E%2520General%26DM_EOM%3D1&C=H07707It seems that anxious investors in these troubled economic times are seeking safety in crowds.

The prices of stocks, bonds and a host of other financial assets, which in normal conditions more often than not move in a diversity of unpredictable directions, are increasingly surging up or down in lockstep.

The rise in correlation between individual stocks, but also between completely separate asset classes like stocks and gold or stocks and oil, “has been one of the big themes of the investment climate this year,” said Marc Chandler, a market strategist at Brown Brothers Harriman in New York.  Read more

Categories: Economics, United States

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