Omnigence Releases New Whitepaper: Stock–Bond Correlation Inversions—Navigating Inflation-Driven Market Shifts
Drawing on more than seventy years of market data, the paper shows that when inflation rises above key thresholds, stocks and bonds can move together, eroding the diversification that traditional 60/40 portfolios rely on. The study dissects historical inflation regimes, from the stagflation of the 1970s to the post-COVID period of 2021–2023, and details how these episodes reshaped portfolio risk and real returns.
“Investors can no longer assume that bonds will reliably hedge equity risk,” said Stephen Johnston, Director at Omnigence. “Our analysis provides a data-driven roadmap for building resilient portfolios when inflation shocks are no longer rare events but a recurring feature of the market cycle.”
The whitepaper also highlights practical portfolio construction steps, including emphasizing shorter-duration fixed income, adopting factor-based equity strategies that favour value and quality, and actively adjusting allocations as inflation regimes evolve.
The full report is available on Omnigence’s website: https://omnigenceam.com/insights/stockbond-correlation-inversions-navigating-inflation-driven-market-shifts
About Omnigence Asset Management: Omnigence Asset Management is a Canadian alternative investment platform specializing in farmland, operational private equity, and secondaries. With offices in Toronto and Calgary, the firm is committed to helping investors preserve purchasing power and build durable portfolios in a structurally challenging macro environment. Omnigence has grown to over CA$1 billion in platform assets by focusing on what it describes as the neglected middle, investment opportunities that are too small or too operationally complex for large institutions and traditional alternative managers.
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Matt Barr
Omnigence Asset Management
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