With the government shut down and the debt ceiling looming, one could argue that the U.S. economy may be on the edge of a crisis.
But the stock market is not reflecting this.
During periods of crisis and high stock market volatility, correlations among stocks increase. In other words, stocks move up and down together.
JP Morgan Funds’ David Kelly just published his quarterly market chartbook, which includes a useful chart tracking stock market volatility and correlations among stocks since the Great Depression.
Business Insider Emails & Alerts
Site highlights each day to your inbox.