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Famous Quant Warns Of ‘Rude Awakening’ In ‘Coming Vol Flare-Ups’
"Bonds imply a recession."
So said JPMorgan analysts led by Marko Kolanovic, who's maintaining a modest Overweight in bonds and cash, set against an Underweight in risk.
As most readers are doubtlessly aware, markets and the Fed aren't aligned on the odds of rate cuts in 2023. Simply put: Markets suspect the odds are elevated and the Fed insists the odds are de minimis.
That juxtaposition is a product of disagreement between policymakers and traders on recession probabilities. On that front t
I don’t know why but I find the whole Vol suppression infuriating. Price discovery seems dead. It is what it is.
The fact that investors (as opposed to speculators) now have to focus on the impact of 0DTE on the VIX speaks to what a casino financial markets have become. We’re all gamers & gamblers now.