The Fed’s quantitative easing policy of the last 10 years created an environment of suppressed volatility and “unrealistically high” returns, according to Andrew Beer, co-founder and managing member of DBi. In today’s environment of persistent inflation, a still resilient economy, and rising interest rates, stock and bond correlations are increasingly likely. Image source: DBi Between December 2003 and August 2023, asset classes like gold, MLPs, MSCI emerging markets, and private equity all offered low correlations to bonds.