Charting How Everything Changed In 2008
By: Tyler Durden
June 26, 2012
Between macro-economic ‘religious’ experiences, regulatory uncertainty, and legislative gyrations, the world appears to be a very different place now than before 2008. It seems that from the ‘Lehman’ moment (some might call it an ‘epiphany’ moment), and later the US downgrade, markets realized that the impossible was possible and while every long-only manager will try to convince you that nothing has changed, these four charts (via Barclays) will go a long way to proving that everything has changed. Whether it is policy uncertainty, the frequency of ‘fat-tailed’ events, market illiquidity, or the domination of correlated ‘macro’ risk over idiosyncratic diversification; trading (or investing) has profoundly changed since 2008.
1) Regulatory/Legislative Uncertainty has experienced a regime shift.