Everything is correlated. There is no diversification. As zerohedge put it, your only betting choices are red or black. But there’s a third option, you can leave the casino at any time. And that appears to be what’s happening.
The high-correlation between all markets suggests a type of mindlessness. No investment has a mind of its own right now. And there’s no volume. Volume is fuel for a market, and this market doesn’t seem to need fuel. So we have a mindless beast that doesn’t need to eat. That’s the definition of a zombie.
There’s more inside…
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