There has not been a single model which could predict what has happened in markets YTD, here's a chart to supplement the statement.
Conservative investors [60:40] took an atrocious hit this year which leads me to the only question; Whether this is an anomaly or this is the new normal?
I have never seen correlations reaching 1 across assets classes before March 2020 but now I observe it very often, strange indeed. One such example was observed in one of our recent trades on Asian Paints, despite crude oil prices surging, Asian Paints extensively recovered from the lower levels.
Best,
Himalay Bhatia
