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Stock Pickers Are Loving This Collapsing Market Metric

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Stock pickers are loving the markets lately.  Well, the good stock pickers are.

2011 was highlighted by a spike in equity correlations.  In other words, most stocks would move in the same direction, hand-in-hand.  As such, stock pickers struggled to offer additional value relative to the indexers.

However, correlations have been breaking down since the beginning of the year.  This chart via Reuters' Scott Barber shows just how low correlations have fallen in the S&P 500.

chart

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