PSigma's Becket: All asset classes could fall in unison in 2011

Natalie Kenway
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Asset class correlation risk has never been higher and markets could fall in unison in 2011, warns PSigma CIO Tom Becket.

The CIO worries the rises seen across all markets in the past 12 months could mean all asset classes have the potential to move together in a downwards direction in the short-term. He says: "After all asset classes did very well in 2010, we are cognisant that there is the potential for a similarly uniform relationship should markets start to fall this year. "Given the abundant liquidity that is currently coursing through the veins of markets, correlation risk has probably never been higher, and that makes asset allocating extremely challenging." Becket says he has been searching ha...

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