In the course of 13 days, the index went from up 6% to down -4.5%, a 10% swing. That’s surprisingly similar to what stocks have done so far in 2018.
Enter February 5th, 2018 – where something curious happened – the fear gauge disconnected from actual fear in the market.
When the dust settled, we’re now living in an environment where there’s nearly $4 Billion less short volatility supply than there was just a week ago, once you add in all the private funds that were also on this trade.
Bitcoin Futures could legitimize Bitcoin for the rest of the investing world
“This dinosaur has been laying here for at least 66 million years,” Sertich said. “I’m over the moon right now about this dinosaur fossil.” Construction crew finds rare triceratops fossil in Thornton – (KDVR) Broadly speaking, rich people own the upside of the economy in the form of stock, while the middle class’s gains […]
Today’s infographic from explains the major differences between NYSE and the Nasdaq What is the Difference Between the NYSE and Nasdaq? – (Visual Capitalist) How it works: The client buys a private-placement life-insurance policy. The insurance company invests in alternative assets such as hedge funds. Profits, if any, would ordinarily be taxed as capital gains, […]
World Stocks continue to separate itself from the group, now 4.7% above U.S. based stocks.
The $4 Billion dollar questions are how crowded can this short volatility trade get before the dam breaks? And will it amplify any such breaking?
Amid an improbable level of calm in markets, it’s worth remembering what Victor Haghani, a partner at Long-Term Capital Management, said in early 1999 about the fund’s implosion, especially given that quiet markets are compelling trading strategies that capitalize on low levels of volatility.
But even amid the gloom, managed futures was the only alternatives category to be in net positive flows, perhaps a sign that advisors have come to recognize managed-futures funds as one of the best diversifying options in a portfolio. The Year in Alternative Funds: A Bumpy Road With Some Bright Spots – (MorningStar) Money […]