The interplay between liquidity and economic growth

Bonds go down when equities go up, is the common perceived wisdom among investors.

However, this has not quite held true when it comes to the performance of global credit in recent years.  Investors pull another £1.2bn from UK equities funds as Brexit continues to bite Looking at total returns from the S&P 500 and the Bloomberg Barclays Global Aggregate Credit indices over the past five years, a negative correlation between equities and bonds seems to have been the exception rather than the norm. What has been going on? Financial market returns are driven by liquidity and economic growth. It is the interplay between both of these that sets the tone for performanc...