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Michael A. Gayed outlines that HYG is used for credit-on regimes while U.S. Treasuries are favored during credit-off periods.
He explains that the JOJO Index rotates between these two asset classes on a weekly basis according to a systematic signal.
Gayed has previously argued that Jeremy Grantham and Michael Burry have achieved greater financial and personal success than their critics, according to a recent article. He has also suggested that a severe short squeeze in the yen could reverse carry trades, positioning U.S. Treasuries as a main safe-haven asset, as detailed in his analysis. These insights come amid ongoing commentary on market positioning and risk management.