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Hailing All Correlation Freaks: UBS' John Clemmow Provides A Surprising Explanation For Surging Correlations: China

Tyler Durden's picture




 

Recommended Reading: The World Explained, from John Clemmow: A focus on correlations, Risk On/Off, and the source: China (pdf)

 

 

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Tue, 09/21/2010 - 23:22 | 596478 Horst Wessel
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Its a good thing the US of A and China are allies ... right .... right?!

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Thu, 07/28/2011 - 07:42 | 1500580 khabmj
khabmj's picture

Relationships between US and china are indeed good as the two economic and military super powers. By their good relations the chance of a world war 3 becomes less imminent :)

 

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Tue, 09/21/2010 - 23:37 | 596486 IrrationalMan
IrrationalMan's picture

Maybe the Fed has pumped so much money into the system that it is literally chasing every asset out there for returns.  Every asset then will then have money thown at it if it is a risky asset or if a safe haven it will be shorted.  Since all of this money is borrowed it is hot and the second the market starts going the other way, they all bail and everything goes in the other direction. 

Wed, 09/22/2010 - 09:29 | 596924 old_turk
old_turk's picture

There you go again, being rational.

Tue, 09/21/2010 - 23:46 | 596496 Hansel
Hansel's picture

2 OTs:

The folly of investing today - Karl Denninger

Karl seems to get so close sometimes, and then skews off on a tangent, like trying to force the north pole of 2 magnets together. Basically, he says buy short term treasuries, but he throws in "...if Gold is right, then America as a nation is finished, and our government will eventually dissolve either into outright tyranny or civil war and you will be THROWING your gold at people to defend yourself." Whatever, it was an interesting read.

White House Insider on Obama: “the President is Losing It.”

I don't know the reliability of the source, but the gossip was entertaining.

Wed, 09/22/2010 - 00:27 | 596543 williambanzai7
williambanzai7's picture

This can only lead to one giant correlation: KABOOM

Wed, 09/22/2010 - 00:49 | 596564 Caviar Emptor
Caviar Emptor's picture

Good article, stating some obvious truths more formally but trying to get at projections. His bias is clearly micro within the macro context: He predicts that cycles with a rather brief history will repeat themselves when the main thesis is that the world has changed. If that's true, prepare for more eye openers and less predictable cycles (my bet)

Wed, 09/22/2010 - 04:13 | 596684 TooBearish
TooBearish's picture

What is the event in 2 years that changes the enironment?  I think the high correlation thingy is more related to black box trading than not...

Wed, 09/22/2010 - 06:48 | 596721 ratava
ratava's picture

I would rather call it China dumping dollars - China waiting to get a better price before dumping more dollars, not much to do with risk, expectations and all that tv pundit mumbo jumbo.

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