In Episode 22 we welcome back David Dredge, CIO of Convex Strategies. We were fortunate enough to have him serve as our "Virgil" guiding us through the current "Hunger Games" global markets scenario that is giving him "Deja Vu" of the madness of the 1990s global markets.
As always, David reminded us of the importance of running a barbell portfolio with a healthy allocation to convexity, whichever tail of your choice, so that your portfolio can survive even when you are wrong.
Everytime I chat with my buddy David, whom is a true legend, I am reminded of the famous Yogi Berra quote:
~ “Prediction is hard, especially of the future.”
In the spirit of the AI era, here is what the machine thought was interesting topics (we agree) so enjoy this amazing conversation that Nadine and I were fortunate enough to have in this episode.
"I keep coming back to Deja Vu of the 1990s"
"Japan will be the spark..."
"How Does Your Strategy Perform When You’re Wrong?"
“Pegs End Badly, All Pegs End"
"Correlation's gonna be a bitch."
"Barbell portfolio with heavy allocation to convexity"
"The post-COVID liquidity burst is akin to 1992-1993"
"Europe is wildly complacent in its volatility pricing."
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