Angry ChairTerror comes to Canada, the US drops military supplies to ISIS, & a 16 year old Australian promises to hoist the black flag on Buck House & 1600 Pennsylvania Ave. As a result, we note the following e-mail announcement: We are pleased to announce that ISIS Fund Services Ltd. has changed its name to IKONIC Fund Services Ltd. As you would… We also find that in this horrifying new world terrorism is likely to almost kill as many people in the west as furniture this year. Lock up your rocking chair. Or train it in counter insurgency.



Let’s say messy so clearly defenestration rises to the top of the ladder in “clever ways to deal with this market”. Actually, not true. The truly asymmetric strategies (CTAs, water, idiosyncratic hedge funds, distress, options, etc) are having a fine time with our biggest CTA position up an eye watering 25% since 1 May, a return that can possibly be described as attractive. In the equity world, hedged strategies continue to find opportunities. Herein lies the beauty of REAL diversification & its biggest lesson: there are far more markets in the world than most of the ding-a-lings masquerading as investment commentators would have you believe & you have to be in a broad mix of them to actually get the 2 big benefits: better returns for less risk. It is simply a mathematical truth unlike the faith based idiocy you can find in most sell-side shops & their associated hangers on, the Modern Portfolio Theory merchants. And there endeth the lesson. & the rant too for that matter…


Slow & getting slower in Urip; okay & getting okayer in the Great Satan; weird in Japan & getting medieval; busting or booming (Hu would know, but he’s no longer on the politburo [ho ho ho]) in China; blustering in Ostrayleeuh (altho that just might be Abbott); zooming but starting to backfire in Nu Zilnd; & awaiting – or already currently enjoying – reformist governments in Africa & Latin America. & there you have it, Go back to worrying about what the cat ate.

This is an extract from Grant Cleary’s newsletter “The Clearance.”  To susbscribe to his newsletter please click here