Some markets like stocks and currencies are treating the tariffs as rather binary events to be immediately bought or sold en masse, other markets like soybeans and metals seem to be letting it create a new market environment with different long-term price levels.
Ironically, the popularity of these products significantly increased the probability of their own demise. These products, and others like them, provided a simple vehicle for betting against volatility.
Here is our completely unofficial listing of several volatility trading firms, via both VIX and index options, and how they have fared thus far in February – with the very big disclaimer that these aren’t official numbers from the managers
What makes Amazon’s grocery stores different from any other store? No standing in line at check out. But in true follower of the American god fashion, Amazon lovers are willing to stand in line for a store that doesn’t have lines….
Checking your Coinbase app and seeing your brilliance rewarded hour after hour. Imagine if every time you looked in your real wallet, there were more dollars in there. How long would it take you to look again, and again, and again?
To see how these managers, as well as the other types – everyone from energy traders to short term players, downloaded our Managed Futures / Global Macro 2017 Strategy Review!
Leave it to macro and managed futures to underperform right when everyone was looking at them in 2009, and crush it when everyone’s given up on them in 2018.
While the correlation between the greenback and crude oil is increasing, the U.S. dollar’s role in the pricing of Crude Oil is quite a fascinating story. John Curran wrote about it in Barron’s:
If you follow our blog closely, you know we have a thing or two or twelve to say about VIX and volatility investing. We even put some of that information together into an easily digestible whitepaper. But that still didn’t cover it all. In light of the VIX and volatility investing hype, here’s every article […]
That 25 sigma event means the “odds” of a -20.5% drop in a single day happening were something on the order of 1 in a trillion, on a normally distributed data set.