Stock Paralysis Eases at Right Time for Bulls Hoarding Cash
- U.S. shares moving less in lockstep than any point in 3 years
- Money managers holding the most cash on sidelines in 15 years
Preparing for Market Black Swans in U.S. Election
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Stocks are stuck in the worst rut since 2006 and active funds are hemorrhaging assets. Yet signs of a thaw are gathering.
Among them is a data that show lockstep moves in stocks are loosening, a welcome sign to fund managers whose efforts to pick winners have been thwarted for years as shares swung in unison. Equity correlations have eased to a three-year low on U.S. exchanges, aided by a rally in economically sensitive banks and software makers and a selloff in defensive industries.