Asset class correlations, rather than the VIX, have recently done a better job warning of...

|By:, SA News Editor

Asset class correlations, rather than the VIX, have recently done a better job warning of upcoming turbulence, writes Nicholas Colas. Right now, S&P industry correlations are running at 88%, up from 75% in February, he says - "a very visible warning flare" for now, but a contrarian buy signal once it gets into the mid-90s (like last fall).