Diego Parrilla

What does that mean for the euro or the yen?

And so what at a first order looks like a one-way street towards weaker dollar could potentially

give bring us into a fork that is much less obvious and what it means on a relative basis which brings me back to gold so i've already played this chess game in my head and brings me back to i don't really know where these guys are going to go but i think i know where gold is going and and and that and that will bring us to taxation etc but it's as you can see it's a fun chess game in in our heads that we need to to understand and play through and

We'll see how it ends.

Okay, so let me first touch on a point you made, which is important on volatility.

And in fact, I think you brought up misconception, which is pretty entrenched into our brains because we tend to associate volatility and risk.

We tend to associate something that is volatile to be risky.

Let me share with you, we haven't planned this, but let me see if I can show you my screen.

We're going to improvise here.

But effectively, I'll show you a point that I think it's important.

So it's the point of, you know, that our crises are mechanical crises.

I call this slide Chronicle of a Crisis Foretold in honor of Garcia Marquez book.

And effectively, what I'm going to show you here is to elaborate on your point is the impact of volatility correlation and liquidity.

And what you see on the bottom left is, let's say, two assets in gray that are

low volatility and negatively correlated.

And in blue, you can see the portfolio.

And you would argue that it looks like this portfolio is extremely low risk, you know, diversified and there's low risk.

Let's look at three partial derivatives, you know, all else being equal.

Let's just shock

volatility and leave everything else unchanged.