Stock Market Correlation – The price / yield correlation between debt and equities has strong foundational roots that tie into an investor’s decision making process relative to investment selection. A Bank of America Merrill Lynch research piece from Hans Mikkelsen talks about breaking this correlation. The meaningful question might be: With a potential rate hike coming, can the correlation between QE withdrawal (interest rate hikes) and the stock market (negative price appreciation) be altered? Stock Market Correlation – Fade the ECB tapering talk, central bankers are not going to raise rates Fade the ECB tapering headlines, BAML’s Mikkelsen advises. He…
Can The Interest Rate / Stock Market Correlation Be Broken?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.