Lets not be silly here -- of course not everything ends up with a correlation of exactly 1 during crashes. It is an exaggeration demonstrating a general trend.

Lets not be silly here -- of course not everything ends up with a correlation of exactly 1 during crashes. It is an exaggeration demonstrating a general trend. In 2008, bonds AND stocks fell because of all-out panic where individuals dumped everything and tried to go into cash. The only thing not falling were US Treasuries since that is where all the capital ended up. In 2015, we have a different issue -- a lot of the market is controlled by algos which, upon seeing instability, sell and go to cash. This causes a valley for all asset classes except the safe harbours (US Treasuries...maybe gold.)