The Globe and Mail Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account
Getting audio file . This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer
Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Morgan Stanley strategist Andrew Sheets made the case for bond investors in a Friday research report (my emphasis),
“Focus on stock-bond correlation misses a main way fixed income diversifies: Stock-bond correlation has been rising. While this dynamic raises fears that bonds won’t diversify, we think this overlooks how most portfolios experience fixed income diversification. A large part of the benefit to a 60:40 portfolio comes from bonds’ lower volatility and ‘not 1’ correlation, two elements that remain very much in place … Instead of whether fixed income can diversify, we think that the more practical q