1. In an inflationary environment … do NOT expect bonds to act as a hedge to lower equities ( very evident today). As the correlation between prices moves positive modern portfolio theory i.e. long “a diversified pool of assets” will get crushed, especially Risk Parity (Julian Brigden)
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
2. Dimnishing Returns-Consequences of Excess Debt
One of the most important concepts in the world to understand e.g why debt globally is expanding at 3,4,5X the rate of GDP growth.We might be in awe of china growth but see the sharp fall in GDP created per dollar of Debt.
I wish I had this data for India to compare, although I am pretty sure that our debt productivity is higher than all other economies shown in this chart (because of higher inflation).
3. It seems everybody is long dollar at same time and I think if dollar stalls here, we might see some short term relief rally in Emerging Markets
4. Great chart from IIF , they have named it “Trade Tantrum”
Article by Ritesh Jain, World Out Of Whack