S&P 500 Clings to Small Gain

The video discusses the historical and recent correlations between stocks and treasuries, highlighting a shift from positive to negative correlation over the last decade. This change is attributed to deflation concerns, which have influenced market behavior. The Bernstein Strategy team suggests that as inflation normalizes, the correlation may turn positive again, impacting the traditional 60/40 allocation strategy. The video concludes with a market outlook, predicting low returns for both stocks and bonds in the coming years.

What historical correlation trend between stocks and Treasuries has been observed in the last decade?

According to the Bernstein Strategy team, what economic concern influenced the correlation between stocks and Treasuries before the recent inflation?

What potential change in stock and bond correlation is suggested by Fraser Jenkins in light of the current economic conditions?

How might the traditional 60/40 allocation strategy be affected by the current market conditions according to the text?

What are the expected returns for stocks and bonds over the next ten years as mentioned in the text?