Standard & Poor's reports global equity market correlations continue to increase. The downside has been the fact diversification has not minimized investors' downside losses during the global market contraction.
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A potential positive is global markets could rise in near unison; thus enhancing future returns when markets recover--whenever that might occur.
Crushing Correlation ($)
Standard & Poor's The Outlook
By: Alec Young, International Equity Strategist
March 18, 2009