Monday, March 26, 2007

Bloomberg's Hauck & Xydias Discuss Low Global Correlations

This is important to you because when many global financial markets seem to be moving more closely together, investors and speculators both take note. We respond, or at least are concerned, in somewhat different ways. The diversification of foreign investing is important to each, but globally-diversified investors don't necessarily need to respond in a short-term-focused way. There are times when correlations track along more closely, like now, and there are periods when markets in different places move up or down together, but in differing degrees, and there are times when the correlations even become negative for a time. This can continue for extended periods of time. No sweat, to a more strategically-oriented investor. More tactically-oriented folks, and the speculatively-inclined, like those described in the Bloomberg article, always on the lookout for a way to shorter-term gains, can get somewhat lathered up over this, but that is the way things are, for now, and perhaps for awhile. Exclusive

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