1. Rising Correlation Is a Signal
In a normal market, stocks across sectors and styles show differentiated performance. But when "everything rallies," it means a common driver (usually liquidity) is overwhelming individual fundamentals—a classic sign of overcrowded trading.
The flip side of abnormally high correlation: when the driver reverses, all assets fall together. Diversification offers the least protection at such times.
2. What to Do
This isn't a call to go to cash entirely—but to check: has the best-performing part of your portfolio exceeded its intended weight? If so, rebalance moderately to bring risk exposure back in line.
Also, raise cash levels now. Not to bottom-fish, but to preserve the freedom to avoid forced selling during any sudden downturn.
明投 Minto
投资分析 · 长期主义者