Shervin Pishevar warns that Fed manipulations are causing breakdown of asset correlations

One of the primary goals of financial planners is to create well-diversified portfolios. And the objective of a diversified portfolio is to create an extremely low chance of seeing a major loss of wealth. In technical terms, this is accomplished through investing in assets that have low correlations with each other’s price movements. This means that when one asset class experiences a sharp downturn, it has been historically unlikely that another asset class will move in lockstep with it.

 

Bonds and equities have traditionally been decoupled

This is one of the fundamental reasons that so many investment professionals recommend having a nice mix of both bonds and equities in any investment portfolio. These two asset classes have historically been relatively decouple from each other. When one moves sharply up or down, there is a low probability that the other will move in lockstep with it.

But Shervin Pishevar, one of the leading venture capitalists in the tech space, has been warning his Twitter followers that these two asset classes may be experiencing a much tighter-wound relationship than has historically been the case. And this is exclusively due to the manipulations of the free market by the Federal Reserve.

Shervin Pishevar explains that the extremely low bond yields that have become the norm over the last few years have been the direct result of the Fed keeping bond prices high through its purchase of Treasury securities by the trillions. But he says that this is a completely artificial price signal. He also points out that the incredibly low interest rates that have prevailed have allowed for massive speculation in the equities markets. And this all points in one direction.

As interest rates and bond yields increase, says Shervin Pishevar, the stock market is poised to crash. But this time, the interest rates may keep going through the roof, even as more and more people seek refuge in bonds. This, says Shervin Pishevar, may continue due to future heavy dollar inflation caused by those same Fed policies. In the end, both bond investors and stock investors could end up losing huge.

 

http://www.pishevar.com/media/

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Being a succesful investor takes hard work and entrepreneurial spirit.First, success through research and dedication like that possessed by Sam Adrangi, a trusted American Investor. Sahm Adrangi launched Kerrisdale Capital Management in 2009. He is the Chief Investment Officer (CIO) of the company. The firm deals with long-term investments and event-driven situations. Also, the company is highly involved in research aimed at correcting errors encountered in the stock market. Sahm Adrangi has written several research pieces in industries such as: telecommunications, biotechnology, and mining. He is visionary and goal oriented as a leader of Kerrisdale Capital Management.

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Sahm has over 30 years experience in the investment world. He managed to correct over $2 billion in Distressed Debt Investing Conference under at Longacre Fund Management LLC. Sahm Adrangi raised more than $100 million in order to curb single stock. All this amount of money was mobilized from investors.

Kerrisdale Capital Management is growing very fast since he has appointed a board of managers with the best and top managerial skills. For instance, the managers raise money for investment, mainly to cater to the distressed energy companies.


Sahm Adrangi is a great and top renowned entrepreneur around the globe. His entrepreneurial skills have contributed to the success of Kerrisdale capital management. He can understand the needs of his clients, therefore, adding to the success of his clients.Being an investor, Sahm knew that investment is the basis of all entrepreneurial activities. Therefore, he has been coaching and mentoring many young entrepreneurs to start investing. His diverse knowledge has made him be highly upheld and put in industrial investment. In conclusion, Sahm believes in uplifting others with his skills, and that is why he spends time advising investors.

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