10-26-26 Stock-Bond Correlation: Oil Broke The Hedge. Oil Will Fix It.

For decades, investors relied on bonds to protect their portfolios when stocks declined. But in 2026, stocks and bonds have begun falling together, raising questions about whether the traditional 60/40 portfolio still works. What changed? The answer may be oil. Lance Roberts examines how rising oil prices, inflation, and Federal Reserve policy disrupted the historical relationship between stocks and bonds—and why those same forces could eventually restore bonds' protective role. As energy prices fuel inflation and economic growth slows, could Treasury bonds become a safe haven again? We discuss stock-bond correlations, Treasury yields, portfolio diversification, and what investors should watch as they manage market risk heading into 2027. Can oil fix the very investment hedge it helped break? 0:00 - INTRO 0:54 - 44% of S&P Report Earnings this week; guidance increased 3:32 - More Volatility Coming - don't over react 5:22 - Is the Worst of October Behind us? 6:13 - Markets Sell Off, Futures pointing Higher from Bottom of Consolidation Range 7:20 - Decent Downside Worth Paying Attention To 9:03 - Real Estate Rotation 9:32 - 10-Yr Treasury Yield Correction to Below 50-DMA (TLT) 12:17 - Tax Loss Selling & Dumb Investments 17:33 - Stock-Bond Correlation - Swapping Safe Assets for Risk Assets 21:20 - Bonds Hedges Stocks Until Inflation Showed UP (chart) 22:28 - Oil Broke the Hedge (chart) 25:40 - Supply Shock vs Growth Shock (chart) 25:53 - It is Psychology the Fixes Supply Shocks - Ex.: Toilet Paper 28:40 - Growth Shocks are Function of Over all Economy 29:16 - All Bonds are a Risk Free Asset 32:00 - What to do: Action, Where, Why (chart) 35:14 - Ken Griffin: Almost Certainly in an AI Bubble? 36:43 - Larry Fink: AI is Transformational 38:53 - Anthropic: The Bill vs the Revenue (chart) 40:00 - Anthropic Outsells Coca Cola (chart) 41:11 - Free Cash Flow Air Pocket (chart) 43:55 - Average Stock is Being left Behind (chart) 44:48 - Valuations are a Terrible Timing Tool (Chart) 48:07 - Irrational Exuberance: Right, but 4-years Early (chart) 50:23 - 8 Rules for Participating with the Bubble (chart) 54:42 - Adoptions of Past Technologies (chart) ==== Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton, Executive Producer ------- Do you enjoy our content? Rate us on Google: https://bit.ly/4b9JtEo ------- Watch Today's Full Video on our YouTube Channel: https://youtube.com/live/ha68zQH7sUc -------- Watch our previous show, "