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Samson Soturian
Ben Felix
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Comments by "Samson Soturian" (@samsonsoturian6013) on "Why It Might Be Time To Rethink Lifecycle Asset Allocation" video.
Except it doesn't matter what assets can be arbitraged. I.E. If the Feds buy their own bonds driving down the price, computers owned by banks will bid up the price of all other bonds because they can borrow at the new lower rate instantly and buy those bonds. Stocks and bonds are similarly connected since a risky bond and a safe stock have the same return so if they deviate a computer will short one and buy the other. Even individual stocks are like this, because if for some reason the Feds bought all the stocks of one company, a computer will simply short that stock and buy up everything else as hedge. This is why everything simply went up at once during quant easing
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