When building diversified portfolios one thing you need to look at is a correlation. But sometimes, historical correlations get thrown out of whack.
Last week was one of those weeks – the S&P 500 fell for the week and so did core bonds. The dollar fell for the week and so did broad-based commodities.
Investment-grade corporate bonds fell for the week, but below investment grade corporate bonds rose for the week. Weeks such as last week can be a difficult environment for diversified portfolios so let’s continue to monitor these historical correlations as we close out October.
For the week ahead, it’s big tech earnings week. Why is this important? Well, big tech has been the main driver of overall performance for the S&P 500 and is a reason why growth is easily outperforming value for how many years now. So, let us see how their earnings reports go and what their forecasts are, and how the market reacts to it.
This has been your Weekly Market Minute, and we’ll see you on Monday – prefer to listen or watch? Check out our video & audio formats below: