Stock Pickers Stymied as Tariff Turmoil Overtakes Earnings Cycle
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Global trade worries are spurring lockstep moves in US equities, a headache for stock pickers trying to beat an already unpredictable market.
Nearly three weeks into earnings season, a gauge of realized correlations between stocks in the S&P 500 Index stood at 0.6 as of April 30, more than twice its average at this point in quarterly reporting periods going back to 2011, data compiled by Bloomberg show. A correlation of 1 implies two assets are moving perfectly in tandem.