Market Structure Challenged: TLT And SPY Both Down As Risk Parity Suffers A Blow

Despite the severity of the current financial market panic, the current market structure has largely stayed intact until yesterday.In a potentially watershed moment, stocks and bonds declined together with TLT off 3.7%, and SPY off 4.9%.Additionally, traditional safe havens, including utilities and gold stocks, sold off sharply with XLU down 5.0%.Newer safe havens were down too, with Bitcoin down more than 7%, and REITs, which had previously benefited from lower rates, down 5.9% on the day.This developing narrative bears monitoring, no pun intended, as an unwind of the risk parity trade would be a true change in the current market structure.