Thursday, December 24, 2015

2015: Year of Imagined Realities

Rewind to one year ago...
ZH: Dec. 31, 2014
Hedge Fund Manager: I Am Taking The Blue Pills Now

"There are times when an investor has no choice but to behave as though he believes in things that don't necessarily exist. For us, that means being willing to be long risk assets in the full knowledge of two things: that those assets may have no qualitative support; and second, that this is all going to end painfully"

"Truth is what we should rid ourselves of as fast as possible and pass it on to somebody else,"

"To conclude I thought that I would expand upon our present Platonic thinking on the Chinese equity market. China is set to record its weakest growth in GDP in 25 years. Yet it seems to have entered a bull market and may be where we deploy much more of our risk capital next year. That's because the recent exuberant run up in onshore Chinese equities seems to me to amply demonstrate the power of imagined realities"

China with GDP growth rate:

The Rydex asset allocation (Bull : Bear):

Index put/call