Jul

19

 “The moves are all there, waiting to be made…But you have to find them.” -Tom Wiswell.

It’s all so simple–in retrospect. The Greek Crisis had to end the way it started–the sonata form. Beethoven’s fifth–the tension release–the frustration aggression hypothesis–the constructal law–. The odds were 100 to 1–that it would end right where it started. But what a game it was.

Paolo Pezzutti writes: 

4 consecutive times both S&P and bonds up is a rare event. It occurred only 6 times since 1999 (it does not seem really predictive though). Gold, oil and euro have printed new n-day lows for 3 consecutive days. Markets have liberated forces that have changed the constantly unstable balance and relationsip between assets. Nothing terribly new has actually happened: gold, oil and euro have continued their downtrend. Stocks have moved once again in the direction of the past 7 years (I could be very wealthy had I followed the Chair’s advice…). I would dare to say the euro is driving. As these macro moves are initiated and sustained by “central planners” there may be room for mean reversion, but one should be careful not to burn his fingers.


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