Right Tail Only, Please
By now, most market participants with more than a passing interest in the day-to-day goings-on are likely aware that equity volatility has mostly normalized following a prolonged period of "sticky" higher forward vol which owed its persistence to a stubborn supply-demand imbalance (more precisely: demand over supply). That eased a bit over the past several weeks.
As with anything else market-related, there's some debate about what comes next. Earlier this month, for example, Goldman's Rocky Fis
I can’t speak to the vol complex, but I will share an inflation anecdote. It was a nice afternoon here in NYC yesterday, so the missus and I decided to bike up to our local bistro-in-the-park for a late-afternoon cocktail. One vodka drink (in a plastic cup) and 5 ozs of guac with state chips (in a metal tin). $29 — before tip. I know times have been tough for eating-and-drinking establishments, but that’s just riidiculous. And I doubt this particular establishment will be lowering its prices this year — or next. I also know they’ve lost a good customer (two, if you count the teetotaling missus).
You don’t even want to know what I was paying for my drinks in my “prime,” where “prime” means right before my doctor said “No more drinking, ever.” š
Scotch jokes aside, restaurants rely on alcohol for margins. So, if they’re crimped on the food side (which I imagine they still are), they’ll raise alcohol prices. It works great — well, unless you’re charging $30 for a vodka tonic, in which case you can run people off.