Quote from HolyGrail:
What controls the US equity market is the potential equity market return as compared to bonds. If the potential returns are too close the equity market will drop or rise to close the gap. If it becomes too wide one or the other will drop or rise to close the gap. Everything else is pure noise.
This is exactly the edge that Marty Schwartz says he uses in his book "Pit Bull". I am getting very interested in this bond to equities theory.
Holy, I don't suppose you could elaborate on this strategy or point me towards more info on it? Thanks.
