One of our essential risk management tools is multi-asset class diversification. Hence, we watch cross-asset correlation closely. We've highlighted before how cross-asset correlation peaked last year and coming down. Today, gold's correlation with the S&P 500 has gone below its long-term average. Bond's correlation with the S&P 500 should also do that soon. Correlation tends to oscillate around the long-term average, so we expect the cross-asset correlation to overshoot to the downside.$SPDR S&P 500 ETF Trust(SPY)$ $iShares 7-10 Year Treasury Bond ETF(IEF)$ $SPDR Gold Shares(GLD)$
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