2012-07-11 — globaleconomicanalysis.blogspot.it
The financial system is so interconnected and so highly correlated, different asset classes that deemed to be uncorrelated or low-correlated, have become highly-correlated and are essentially all sitting in one systemic basket.
The way to address the problem is to look for baskets that are not in the financial system. You have to look for physical assets, hard assets, that are not financial instruments, not only the assets themselves are not in the financial system, but the way you own them is not related to the financial system.
In other words, direct physical ownership of non-financial assets. ... The main one is gold.
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