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No Risk Diversification in International Markets

|Includes: SPDR S&P 500 Trust ETF (SPY)

See the chart below if you think that investing in international markets diversifies risk.  The correlation on the timing of these moves is close to 100% and the statistical correlation on the actual moves would be very high too.   This can only be explained by program trading that can move all markets.  This not good. 

S&P500 Index 5_6_10
S&P500 Comp Index 5_6_10
DJIA Index 5_6_10
DJIA Index 5_6_10
NASDAQ Comp Index 5_6_10
NASDAQ Comp Index 5_6_10
Brazil Bovespa Index 5_6_10
Brazil Bovespa Index 5_6_10.png
Mexican Bolsa Index 5_6_10
Mexican Bolsa Index 5_6_10
TSX Comp Index 5_6_10
Canada TSX Comp Index 5_6_10


Disclosure: Short S&P500, NASDAQ 100