‘A One-Way Equities Index Vol Destruction Event’
It doesn't pay to be long vol. The opposite, in fact.
For a fleeting moment in April, it looked like equities might sustain a pullback. The US rates complex had re-priced such that Fed cuts were a relatively distant prospect (i.e., an H2 event) and the Mideast powder keg looked set to explode in earnest (i.e., a direct Israel-Iran war appeared imminent).
Suddenly, and for the first time in a long time, demand emerged for downside hedges.
Fast forward a month and traders were staring at new re
Thanks.
I’ll resist the temptation to again repeat that little else matters for investors. Oh …. I did.
A lot depends on NVDA earnings and guidance next week.
That’s probably correct, for a day or two anyway.
But Good Lord, isn’t the stock market supposed to be a venue where entrepreneurs in need of capital meet people with capital? A capital market?
How far we have moved away from that quaint old notion now that the stock market and, by extension, the broader economy is beholden to the price action in one stock.
Isn’t this getting pretty damn stupid?
Ah well, I wish I was 40 years younger. My younger self would have loved to belly up to the tables in this casino!
So what’s the problem? I like it when I don’t have to use my insurance policies. And insurance is getting cheaper? How timely. The asset I’m insuring is worth more. Guess I’m old fashioned…
The maturation of a new twist on leveraging up.