Expect Higher Correlations And Volatility In This "Fed Manipulated" Market

Expect Higher Correlations And Volatility In This Fed Manipulated Market by Alex Barrow, Macro Ops

We’re trading in some truly interesting times.

Check out the index below from Credit Suisse depicting contagion risk across global markets and asset classes. It’s now showing that global markets and assets are at their highest correlation since the index was created.

Correlations And Volatility

It’s interesting because normally correlations rise during a bear market. But right now we’re hitting record highs while many global markets are still in an old cyclical bull.

These high linkages are why, on Friday’s sell-off, there was hardly a drop of green in any market...