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Darius Dale and Michael Gayed: Uncovering the Secrets of Global Liquidity & US Business Cycles

Lead-Lag Live

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The Interaction of Treasuries Against Equity and Major Drawdown for Equities

If two is likely to maintain the max variable or value in this equation, then it would seem to suggest that October of 2022 was not the ultimate low of the bear market. Last year was the only time of history that treasuries lost more money than stocks in a major drawdown for stocks. If we were to break the lows, which I think would happen under credit event type scenario, that's the whole sequence path. It could be that we look back and that top 20 drawdown chart shows actually that treasiors on a relative basis were still a better allocation.

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