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A 'Troublesome Commonality' During Two Recent Bouts Of Global Market Volatility
A prudent investment strategy usually stresses diversification because no one knows when a single stock, industry, or entire financial asset class will tank. A very typical investment portfolio will have a mix of both stocks and bonds, like Treasury bonds. Investors count on this mix because when stocks tank, that money often flows into bonds, sending prices in those markets higher. However, that relationship hasn't held in some recent bouts of market volatility. "Looking at two recent episodes of market volatility, the taper tantrum of 2013 and the September setback of 2014, we discover a troublesome ... (full story)