I have a bad feeling about this July 25, 2011 at 8:01 am

It is midsummer, there is no budget deal, the markets are quiet, and everyone is pig tired of dealing with crises. This could go badly. I’d say go to cash, but then the question is what currency – if a budget deal is done then the Swiss Franc will likely sell off fast, for instance; but if it isn’t, it is a least a safe haven. Unless the Swiss intervene to prevent further appreciation. Now would be a good time for someone to come up with a genuinely uncorrelated asset…

One Response to “I have a bad feeling about this”

  1. Surely the truly uncorrelated asset is sterling cash! Measured in nominal sterling terms, it has no variance, and therefore no covariance with anything. (Owner-occupied housing has this useful property if you are interested in real-terms uncorrelated assets, for those of us who plan to continue living in houses)