Stock-bond correlation is an important component of portfolio allocation. It is widely used by institutional investors to determine strategic asset allocation, and is carefully monitored by multi-asset fund managers to implement tactical asset allocation. Over the past 20 years, the correlation between stock and bond returns in the US has been negative, while it was largely positive prior to the dot-com crisis.
Our 2024 CMA outlines the general attractiveness of real and alternative assets compared to listed assets and confirms good opportunities in terms of risk/return profiles. The attractiveness of these assets is linked to the remuneration for the liquidity risk exposure.