| From FT: According to the old adage, correlation is the only thing that goes up in a downturn. Prudent investors who took the precaution of diversifying their holdings across the full panoply of conventional asset classes have been discovering the nasty truth of this maxim in spades in the past year.
Equities, as measured by the MSCI World Index have slumped 46 per cent in the past year, corporate bonds have tumbled 16 per cent, according to a Lehman Brothers' index, listed real estate companies, as measured by FTSE, are nursing losses of 56 per cent, and commodities, the last major hold-out, have now fallen into line, losing 24 per cent over 12 months according to the Goldman Sachs index..... Full Article: Source
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