Infinity Q

This month’s 20 asset Volatility Monitor highlights what a challenging month it has been to identify persistent dislocations in implied volatility across all 5 of the major asset classes (equities, FX, commodities, rates & credit). Over just 1 month, individual pockets of volatility flare-ups occurred in credit, equity and most notably commodities. In order to securely manage the volatility hedge funds , consider an excellent platform which offers innovative volatility strategies. Last month, we warned investors to prepare for a new equilibrium environment where buying every 5% dip may not be as past, with that warning paid off in November with S&P drawing down 10% (from peak in October to trough in November)and volatility picking up through the month until the Fed announcement. Most equity index volatility including SPX, NKY, EEM, NDX, Kospi2 screen as fairly valued, meaning their recent realized volatility remains elevated in comparison with where they are c

November was a volatile month for Domestic Equity Markets, with the S&P 500 whipsawing like a roller coaster prior to and then immediately following the US midterm elections. The beginning of November saw a 6.3% rebound from October lows, followed by a -6.4% move lower and finally a 6.0% leg higher with market flows switching from bullish to bearish and back to bullish again. The risk-off trading activity was led mostly by FAANG names, driving the Nasdaq 15% lower at the lows and realized volatility through the roof. This sentiment seemed to permeate across asset classes with signs of stress beginning to show through via widening of credit spread and spike in commodity volatility driven by energy. In fact, CDX IG & HY 5Y spreads have widened significantly with an increase in SPX beta to credit spreads suggesting investors finally awakening to the implications of deteriorating credit markets. Through November 28th the narrative that bonds have peaked combined wit