Wednesday, July 6, 2016

Globalization: It's ALL ONE CASINO

Prechter always says that on the downside, global RISK is "all one market". Correlations go to 100%. But we've only seen that twice in the past 12 months, so how would we know?

I just showed that Sears retail is 100% correlated to Deutsche Bank and the 10 year Treasury...Whereas Amazon is 100% correlated to Powerball...

Similarly, remember this chart showing the U.S. versus the rest of the world? 

One wonders, who will be right in the end.

So instead of MSWORLD, I inverted the S&P 500 volatility index aka. VIX:

And then I took out the S&P 500, and put back the MSWORLD:

"There is no alternative"

"Keep calm and buy China, Deutsche Bank, gated London REITs, JPY, triple leveraged oil, and Italian Ponzi loans to go with your Amazon safe haven"