decoupling

decoupling definition - finance
The tendency of U.S. Treasury bonds to rise significantly when the stock market trades lower. Decoupling is caused by investors liquidating stock holdings and putting their funds in the safety of U.S. Treasury bonds. Decoupling makes the purchase of Treasury securities a good way to diversify a portfolio because losses in stocks will typically produce gains in bond prices.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.