Death of Diversification - II - Re Post - Sameer Saifan

Death of Diversification - II

http://sameersaifan.blogspot.com/2011/04/death-of-diversification-ii.html

SAMEER SAYS
THE ABOVE IS A LINK TO A POST I MADE ON APRIL 1ST , 2011 THIS YEAR

PLS SEE BELOW WHAT I HAD SAID

THINGS ARE UNFOLDING EXACTLY AS I HAD SAID IN APRIL

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Diversification is a MYTH
1ST APRIL , 2011
It is also DEAD


Since early 2009 - SPX , CRB , FOHF ie risky assets have all moved UP

DXY has moved down - so this makes sense too - it is a RISK OFF trade


10 YS US Rates haved moved UP so bond prices have moved down - This also makes sense


HY Spreads have moved down - so HY bond prices are up - so this makes sense too


But look at the way they have moved - in 3 steps UP


All in the same direction - in the same style - in 3 steps


Rising liquidity has lifted all risky boats - but this has to end at some point as this cant go on forever.


When we approach that TIPPING POINT - trust me - all these assets will head lower - not only lower - but they will crash

Only the DXY will be UP and this is the asset you MUST own

I am saying it again and again.


Also VIX is one thing that will rise as SPX collapses all the way to 666.

Fund of Hedge Funds will have a very tough time - in general.

The death of diversification has sown the seeds of destruction for the HF industry.


I am sure looking back from 2015 or 2020 - the HF space will look very different.


Let us wait and watch.

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