Our Correlation Analysis looks for previously stable quarterly Correlations of some significance (50%+) that see eratic changes during the last month.
Observations:- SPY, FXE, QQQ,FXA, FXI .......EURO, China, Cyclicals, Carry Trade increase their correlation during the consolidation
- JPM's correlation weakens towards Safehavens like the TLT, JNJ
- GOLD decouples from Silver
Conclusions:
- Correlations always move together in down markets which this Analysis seems to support
- The EURO or US$ will be th KINGPIN to watch
- The pure Inflation trade is off with Silver parting ways from GOLD
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