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John Authers & Michael Gayed: Unraveling the Peak Passive Debate

Lead-Lag Live

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The Co-Movement of Asset Class as Opposed to GFC

Before the GFC, people thought they were diversifying by moving into assets that had previously not been correlated with each other. But making the same bet multiple times in different asset classes wouldn't have protected them from crash of 07 and 08. So you had this remarkable collapse of everything at once. And we possibly have a very major case of malinvestment of mispricing because there's not been normal price discovery for such a long period. The great hope for the moment is that somehow or other we can muddle our way through without a major crisis.

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