Research and Insights
Articles by Zhijian Lou
Asia Pacific Market Report - Asia Pacific Equities in a Correlated WorldResearch Report | Jun 26, 2012 |
The 2008 financial crisis put global markets into a volatile “risk-on / risk-off” swing. When investors worry about recession or deflation, their risk aversion goes up and they shift to low-risk assets, thus hurting risky assets like equities. In contrast, when investors expect a recovery or inflation, their risk aversion goes down and they shift into high-risk assets. This binary attitude results in a high degree of correlation among global markets and may point to a...