The Epsilon Theory Archive

“History doesn’t repeat itself, but it often rhymes.” Mark Twain said that, or Abraham Lincoln depending on what corner of the internet you find yourself on any given day. Likewise, there are common themes, topics and subjects that run throughout the Epsilon Theory archive. All of our writing is categorized, tagged and organized to be easily accessible, but beware: your search for truth on one matter may very well lead you down any number of rabbit holes (and we hope that it does).

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Rusty lays out the perils of playing at diversification instead of actually doing it. Read more »

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Back by popular demand, it’s the Mid-Summer Epsilon Theory Mailbag! Read more »

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Many investors can – and if they are acting as fiduciaries probably ought to – take more risk. Read more »

quant

Near-term and long-term correlations are converging but are still below historical averages. Read more »

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What can a bird teach us about value investing? To everything there is a season. Read more »

quant

Correlations are very low in nearly every asset class. Read more »

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Short-term correlations are still below long-term averages in many asset classes. Read more »

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U.S. debt has had below-average correlations for much of the year. Read more »

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Nearly every asset class had short-term correlations much closer to long-term correlations. Read more »

quant

Short-term correlations in bonds have gone negative. Read more »

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