The negative correlation between stocks and bonds, which was present from August to October of this year, is fading as we approach the election next week.
Both asset classes have recently declined together due to election uncertainty, Federal Reserve policies, and geopolitical concerns.
The recent bull run in stocks was due to positive economic data, while bonds initially gained but then declined after the Fed’s gradual approach to rate cuts. But now, rising inflation concerns could affect the relationship between stocks and bonds.
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