No escape. When markets move, they all move together.

We’ve been asking around for people’s favourite charts of the year. Vladimir Pillonca, an economist at the IMF‘s monetary and capital markets department offers this:

He says (with our highlights):

This simple chart from the October Global Financial Stability Report shows that global asset correlations levels transitioned to a new, much higher regime over the last five years – as shown by the index above. What is remarkable is that asset correlations have risen, despite the low market volatility of recent years.

The cross heatmap above shows the increase in comovement is a remarkably broad-based phenomenon – it hasn’t been driven by just one or two asset classes.

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