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Why did stocks and bonds both plunge on 9 Sep 2016 despite negative correlation?

Discussion in 'General Investment and Economics' started by helpme, Sep 10, 2016.

  1. helpme

    helpme Well-Known Member

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    Stocks and bonds have an inverse correlation relationship historically. This allows portfolio managers to do hedging. Today, they seem to be directly correlated. Both plunge on 9Sep2016. Why the change in the correlation?
     
  2. minwa

    minwa Well-Known Offender

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    You sure ? Or going with what the textbooks say ?

    1452893104841.jpg

    I see longer periods of correlation than inverse correlation.


    One day move is pretty trivial in the grand scheme of markets, wouldnt you agree ?
     
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