As Volmageddon Anniversary Approaches, Is Good News Bad News Again?
As absurd as it sounds coming at a time when the US labor market is still almost 10 million jobs shy of pre-pandemic levels, the market might be approaching "good news is bad news" territory.
To be sure, that assessment could be out of date come Friday if January's jobs report prints a downside "surprise." Indeed, even a miss on jobless claims could serve as a reminder of how tenuous the situation still is on Main Street.
But inflationary signals from PMI data, the ADP beat, and rapidly fallin
Your coverage in the lead up to the 2018 vol massacre was spectacular. Tracking the Vega exposure, volume of futures trading, laying out exactly what could happen in a tail scenario. And somehow, even with all of the knowledge and understanding of the topic, I always thought someone would step in and provide the necessary liquidity for rebalancing, and I still got blown out of that short vol position.
H-Man, it would seem the boiling frog has found a rather comfortable spa. Not to hot but just right. Methinks the warm temperatures will be sustained for some time to come. But what stokes those fires, no man knows but God alone in the words of Socrates.
What is the rate on the 10 year that tips over the equity apple cart?