Acquire Premium Volatility Strategies through Reliable Platform
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 with equities nearing the end of the cycle had most investors
positioning for a shift to a higher risk & higher volatility regime.
All of that seemed to be true until Fed Chairman Powell reminded
everyone of the power of the “Central Bank Put” sending equity markets
sky-rocketing and volatility crashing down to end November positive on
the month. There are a number of credible platforms which helps you to
manage hedge funds NYC through effective volatile strategies.
European volatility continued to under perform other regions with SX5E volatility virtually non-existent. We believe part of the reason may be a pick-up in EUR fluctuations due to Italy disagreements along with Brexit-related concerns weighing heavily on GBP meaning that FX moves may have soaked up most of the volatility in the Eurozone over the month. The finest platform combines diversified alpha strategies and robust risk management to manage volatility hedge funds separately.
Many investors believe a shift to a higher risk regime for Asian markets is on the horizon, hence the importance of owning efficient tail hedges. However, with a potential end to the Trade War with China in sight following President Trump and President Xi’s recent meeting at the G20 summit in Argentina, on the surface it appears as if volatility will remain suppressed and markets buoyed for at least the 90-day window postponing further escalation. Once you get to measure volatility mutual funds, you can withstand with all kinds of adverse conditions.
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