Always superb research from Birinyi

From Birinyi Associates, Inc.

Over the course of the last two months stocks have become toxic in the sense that nobody wants to buy them. ..... correlation is currently as high as it was in October and November 2008. This means that when the market is down most stocks are also down and even the best stock picker will have to accept the market's daily fate.

On the bright side, we saw in 2008 that correlation levels this high were not sustainable and since this is a trailing indicator the worst might be over. Correlation peaked at the end of the decline in late 2008; not at the beginning.

My point. They always find intriguing correlations. Great work!

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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