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A major divergence has opened up in my proprietary quant model. Historic correlations are breaking down, presenting a unique opportunity for investors brave enough to take advantage of the temporary dislocation.
Yes, it is time to sell avocados to buy Bitcoin.
Past Fed easing cycles and the historical gold vs. S&P 500 relationship support our view that the metal is set to outperform stocks. At about the same level as the first rate cut in 2007, the gold-to-S&P 500 ratio is apt to retrace the rally coincident with the prior Fed cycle.
@ZeroVolatility Im short VIX and SnP - so far this strategy works for few weeks. Now Im VIX flat, waiting for spike there and entering short around 23-24 (when VIX will be in downtrend again). Lets see when it triggers.
@PeterLBrandt 1930s were very different from gold-standard point of view. As well as understanding of economics of Quantitative easing and economic theories. We might go into depression, but it is very unlikely it will be so long and severe as in 30s.