A correction in financial reflation: all assets are challenged simultaneously

Posted on 13. Jul, 2015 by Jean Jacques Ohana in Weekly Focus

After a sustained rally of equities and bonds since mid-2013, a simultaneous drop of assets representing all macroeconomic themes, i.e. inflation (commodities), disinflation (bonds) and growth (equities) has unfolded.

As represented in figure 1, Riskelia’s long only strategy on a universe of equities, commodities and sovereign bonds is experiencing a drawdown similar to the ones of [...]