Bloomberg – A Volatility Trap Is Inflating Market Bubbles A number of markets show not only elevated valuations, but also irrational investor behavior. Investors face a conundrum: The world is experiencing a record synchronous growth phase, but an increasing number... Read More
The Financial Times – Hedge funds see a gold rush in data mining Investors seek an advantage from tradable intelligence but legality of alternative data is in question ?In order to generate sustained [returns] investors must embrace the task of acquiring,... Read More
Bloomberg – Stock Returns, Like Politics, Are Not Normal There are two primary reasons for the protracted decline in both implied and realized volatility. If it is option selling itself that is playing a role in muting market volatility and if... Read More
Bloomberg – Volatility Gauges Tumble to New Lows Amid Complacency Fears Bank of America MOVE Index closes at an all-time low on Monday The markets are alive with the sound of ?zzzzzz? as the latest trading session marks yet another another... Read More
Aaron asks: “What’s our prediction on the 10-year yield, and do we see it potentially going down to 2%?” Jim Bianco: That reminds me that you know, you got to give them a time, you got to give them a... Read More
Bloomberg – Volatility Gauges Tumble to New Lows Amid Complacency Fears Bank of America MOVE Index closes at an all-time low on Monday The markets are alive with the sound of ?zzzzzz? as the latest trading session marks yet another another... Read More
Bloomberg – Struggling Stock Pickers Eye Quants as MiFID Sparks Rethink Pressure is mounting on active stock pickers as a decade-long shift in investment towards lower-cost and better-performing passive products continued through 2016, according to a survey by the Boston... Read More
OPEN Today’s Newsclips Today’s Topics Include: ECB Likely the Most Watched Central Bank in 2018 Mnuchin Reiterates His Stance On Payment Prioritization Turbulence Ahead for Health Care Chinese Yuan – Strength Against Dollar at Expense of Weakness Against Euro European ETFs... Read More
OPEN The Era of Ubiquitous and Accessible Information Dampening Volatility In our latest webcast, Ben Breitholtz looks at his post titled The Era of Ubiquitous and Accessible Information Dampening Volatility. Risk as measured by implied volatility across all... Read More
Bloomberg – As VIX Plumbs Depths of Torpor, Betting on Its Future Gets Brisk Options volume on the volatility index at highest for any July Falling asleep as the CBOE Volatility Index signals ever-expanding dormancy in the equity market? Options traders... Read More
OPEN Today’s Newsclips Today’s Topics Include: What to Expect on Fed’s Reinvestment Plan CNBC’s Fed Survey The Era of Ubiquitous and Accessible Information Dampening Volatility Easy Financial Conditions Might Overrule Low Inflation In Fed’s Eyes Stay In School Kids The Dollar’s... Read More
Bloomberg – As VIX Plumbs Depths of Torpor, Betting on Its Future Gets Brisk Options volume on the volatility index at highest for any July Falling asleep as the CBOE Volatility Index signals ever-expanding dormancy in the equity market? Options traders... Read More
Ben: There’s a question about fund flows into short vol, and how that’s reinforcing and also who’s taking the other side of that trade. Pete: That is certainly a good question, Jeremy. I don’t necessarily have a good answer.... Read More
Comment If 2016 was the year of the populist movement with Brexit, Trump and the Italian referendum, what will 2017 bring? The first measure is the Dutch election tomorrow. Will it signal a continuation of the populist movement? The chart above... Read More
The Financial Times – The Bloomberg terminal: clunky, costly, addictive, ubiquitous Yet none have managed to worm themselves quite so utterly into the fabric of finance. In 2010 the understanding fiancée of a BlackRock fund manager commissioned a wedding cake... Read More
The Financial Times – Causes and consequences of China?s contagious case of deflation The consequences of China?s deflation problems are ubiquitous and spilling into the rest of the world. Slower economic growth and a steady decline in the economy?s commodity... Read More
The Financial Times – How to see into the future Irving Fisher was once the most famous economist in the world. Some would say he was the greatest economist who ever lived. ?Anywhere from a decade to two generations ahead... Read More
The Financial Times – Role of banks recedes in wake of crisis It looks as though the greatest long-lasting victim of the global financial crisis could be the bank itself. In different places, and for different reasons, banks? centrality to... Read More
<Click on chart for larger image> PIMCO – Paul McCulley: Just Give Me a Framework I have been writing about this issue for, literally, ten years.1 There are many ways to come at the analysis ? theoretical, empirical and institutional.... Read More
Bloomberg Brief – The Devil Lurking in the Retail Store Closure Details In last month?s Sears Holding quarterly earnings conference call, CEO Eddie Lampert noted, ?Shoppers seem to be figuring out what they want online then making targeted trips to... Read More