Know Your Risk Podcast The Blind Spots in Today’s Market
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Mar 27, 2026 They unpack market blind spots caused by ETF flows and fragile correlations. Commodity dynamics get attention, from oil rallies and energy tradeoffs to gold's reserve role. Geopolitics and chokepoints surface as drivers of sustained price shifts. Policy mistakes and interventions that mute price signals are explored alongside unusual shortages like helium.
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Market Price Blindness From ETF Correlation Trading
- Markets show price movements without truly acknowledging underlying macro conditions, driven by cross-asset quant rebalancing and ETF flows.
- Zach Abraham points to ETF correlation trading and 'muscle memory' causing price blindness when a real macro event arises.
Gold Is Both Trend Trade And Financial Reserve
- Gold's price is acting both as a trend-following trade and as a central bank/sovereign reserve asset, muddying signals.
- Chase Taylor notes some sales (e.g., Turkey) may be currency defense, while macro funds forced liquidations.
Trim Concentrated Macro Bets After Regime Shifts
- Trim concentrated macro exposures when price action decouples from fundamentals rather than waiting for panic lows.
- Zach says they cut MAG-7 and halved gold exposure after key macro shifts, playing miners as 'house money'.