QRiskValue builds trading and analytical models which have been tremendous out performers since 2007. Data provided by several methodologies show similar extreme price patterns as those exhibited in the late summer of 2007. Equities and there subordinates the indexes have seized on the game play of what QRiskValue calls the efficiency of limited choices. These choices are rarely the right choices but they are the flavor which flows evenly and for a while, profitably. Much like the mortgage trades of the recent past and the technology bubble trades of a decade ago, markets prefer few choices to expedite transactional efficiency and the accompanying rationalizations of value attached to them. The Bernanke Box started as a strategy evolving from the Fed's limited choices to stimulate as well as its desire to trap or strangle less risky choices of managers. This Box has now delivered a franchise methodology based on asset relief by forcing managers to deliver returns from equity asset risk as an alternative to virtual zero risk money funds.
Vegas does not care what color shirt you are wearing or how fat you are, they want you to play the money. Bernanke does not care what assets costs or how they are dressed, he just cares about the up. For those wishing to dress themselves, it may be best to avoid these markets.
