AI and Geoeconomics

The graph below is automatically updated on a daily basis using Google Spreadsheet combine with Google Finance API #FinTech - Access File  here Fed Rate Hike Not Seen Til 2016, Cheap Money Fueling Stocks - April 18th, 2015 Equity-bonds correlation has move up from -70% on Feb 5th, 2015 to -17% this week. Increasing likelihood  of a rate hike by the Fed this year but also uncertainties about inflation may explain this rapid variation. #GoldmanSachs : "We do not have much confidence in the inflation outlook"  http://ow.ly/LMlUg #inflation #uncertainty High valuations represent a risk both on Equity and Bonds - April 5th, 2015 “We believe that the biggest risk is valuation risk : the risk of loss that is realized when expensive assets revert to fair value. This risk is critically important today as we believe stocks and bonds are expensive globally,” Catherine LeGraw, a member of GMO’s asset allocation team, wrote in a recent white paper . Are y...

March 5 (Bloomberg) -- European stocks fell on concern the plunge that wiped out $1.5 trillion in world market value last week may prompt more investors to sell equities and buy bonds. March 2, 2007 5:20 PM ET (Briefing.com). This is what happens in market consolidations. Just as the bearish arguments were dismissed a month ago, bullish arguments now get no support. Everything is viewed in a bearish light. The "pull to the right" (i.e. the probability of hitting the right hand side of the returns distribution before its left hand side) for equity markets has decreased in view of the current bearish light that can be observed on the equity market. Everything else being equal, Quantitative Asset Allocation Models have been increasing exposure to governmental bonds. (Photo: The Construction of the Empire State Building, 1930-1931 , New York Public Library)