Forward Guidance · Wednesday, September 16, 2026
Dean Curnutt highlights that the current market is experiencing a period of unusually low realized correlation among stocks, a phenomenon not seen in historical data beyond a one-year lookback. He quantifies this trend as typically ranging from 5% to 15%.
“Right. Um, you hit the nail in the head that, uh, we live in this environment in which the correlation among stocks, uh, is we've never seen anything like it. There's no comp. You can't go back five years or 10 years or 20 years. Um, you can only go back one month or three months or a year. Um, so it's been with us for about a year and a half.”
“And that is that the realized correlation of stocks in the S&P, um, is trending, uh, kind of 10 to 15%.”
“And it is really difficult for me to express how unusually low these numbers are.”