What Investors Should Know About The Correlation Between Bonds And Stocks

(Bloomberg) --

Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance and economics.

Sixty percent in equities/40 percent in bonds is a popular, general approach to structuring a diversified portfolio. In theory, when times are good, your stocks go up, and when times are bad, your bonds go up. Over time, your portfolio makes money with minimal volatility. But what if the correlation between bonds and stocks changes? On this week's Odd Lots podcast, we speak with Farouk Jivraj, head of Investment Strategies Research at Barclays, about cross-asset correlations and what causes them to change over time. 

©2018 Bloomberg L.P.