Sawyer Capital ManagementCorrelations Can Be Predictive – Sawyer Capital Management https://www.sawcap.com Evolutionize Web Site Tue, 14 Nov 2017 19:30:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Correlations Can Be Predictive https://www.sawcap.com/2015/11/02/correlations-can-be-predictive/ https://www.sawcap.com/2015/11/02/correlations-can-be-predictive/#respond Mon, 02 Nov 2015 09:00:34 +0000 http://evolvemypractice.com/?p=2313 Academic researchers have presented theory, as well as empirical evidence, suggesting certain linkages between equity risk and the Treasury bond market, a relationship that clearly has important implications for investors’ understanding of markets and portfolio design. Studies, for example, have found that greater economic uncertainty leads both to higher equity volatility and increased motives for...

The post Correlations Can Be Predictive appeared first on Sawyer Capital Management.

]]> Academic researchers have presented theory, as well as empirical evidence, suggesting certain linkages between equity risk and the Treasury bond market, a relationship that clearly has important implications for investors’ understanding of markets and portfolio design.

Studies, for example, have found that greater economic uncertainty leads both to higher equity volatility and increased motives for precautionary savings that can depress interest rates. Moreover, links between the stock and bond markets have been attributed to flight-to-quality (FTQ) or flight-from-quality (FFQ) as some investors move between riskier stocks and safer Treasurys due to changing perceptions of risk.

Read the rest of the article on ETF.com.

The post Correlations Can Be Predictive appeared first on Sawyer Capital Management.

]]> https://www.sawcap.com/2015/11/02/correlations-can-be-predictive/feed/ 0