Pascal
06-17-2013, 03:50 PM
I hope that with the graphs below, everybody can now be convinced that funds are trading short the miners and long equities and that a pull-back in equities will be bullish for gold miners. But the opposite is also true.
Because it is used by everyone, this pair-trading tactics completely loses its purpose of hedging: both positions will lose when there is a market change. It might be better to be long both or short both the S&P500 and the miners.
Pascal
1885918860
Because it is used by everyone, this pair-trading tactics completely loses its purpose of hedging: both positions will lose when there is a market change. It might be better to be long both or short both the S&P500 and the miners.
Pascal
1885918860