'Want Diversification? Invest in Sweden' by Morningstar UK. It grabbed my attention as it not only covered portfolio diversification but also mentioned Sweden in particular.
Well.....take a look at the the following graphic. It shows which stock markets are mostly correlated over 13-week periods the past 10 years. A blue line is a positive correlation and a red line a negative correlation.
Yes, that's right, Swedish equities positively correlate with the Taiwan market! Very strange but not only that, there has been a negative correlation with the US stock market. Sweden (along with the UK) seem to stand out from other European equities.
This is good news for diversifying your portfolio and provides an extra reason to assign Swedish equities their own allocation in your portfolio.
Remember: Correlations can change and what may have been true the past 10 years may not continue going forward.
Gold steadied on Monday, hovering near a more-than one week high touched in the previous session after the dollar fell as investors focused on soft U.S. inflation data that overshadowed strong GDP numbers.
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