This is an excellent reminder that correlation does not equal causation. Many of the market relationships investors rely on are useful, but they are not permanent. They work only when the underlying economic conditions remain the same.

For institutional investors, the key question is not whether a historical relationship existed, but why it existed. Understanding whether markets are being driven by monetary policy, inflation, economic growth, or risk sentiment provides a much stronger foundation for portfolio decisions than relying on historical averages alone.

As market regimes change, investors should be willing to challenge long-held assumptions and reassess the role each asset plays within the portfolio. That mindset leads to better strategic asset allocation and more effective risk management.