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"