Having been involved in the markets for more than 40 years, I sense that the current situation of correlation breakdowns is unprecedented. while it was not unusual in the past for one or two long-term correlations to break, it is almost as though every relationship has busted. What exactly does risk-on or risk-off mean anymore? Ultimately, I cannot look at the copper market, and take my understanding on what is required to dig more of it out of the ground (which while not exhaustive is reasonably robust as I continue to try to learn more about the processes) and see that over time, the red metal must rally. but these days, timing is incredibly difficult. it could take 6 months of further decline before something catalyses a rebound.
Having been involved in the markets for more than 40 years, I sense that the current situation of correlation breakdowns is unprecedented. while it was not unusual in the past for one or two long-term correlations to break, it is almost as though every relationship has busted. What exactly does risk-on or risk-off mean anymore? Ultimately, I cannot look at the copper market, and take my understanding on what is required to dig more of it out of the ground (which while not exhaustive is reasonably robust as I continue to try to learn more about the processes) and see that over time, the red metal must rally. but these days, timing is incredibly difficult. it could take 6 months of further decline before something catalyses a rebound.
Maybe but we're not dealing in conventional correlations.
I wonder if there are any more conventional correlations
I have always preferred unconventional correlations - at least that's what my wife says.
😂