Category: volatility

  • Warrington – The return of Volatility

    | | volatility, Yield Curve

    Volatility returned to the S&P in August. While multiple sources were responsible, the most obvious catalyst was the escalation of the trade war with China.  Just one day after the Federal Reserve indicated that U.S. monetary policy would be responsive to further trade war skirmishes, President Trump provided justification for further policy easing when he tweeted to invoke additional Chinese tariffs.  Later in the month the Chinese retaliated, and Trump responded with more tariffs.  The net result of these actions, which also caused a huge rally in bond markets, was a dramatic increase in market volatility.  The S&P rallied or declined by 1% or more on eleven separate days in August, the most in one month since February 2018, and the index had three separate days with declines over 2.5%, the most in nearly eight years … Read more Warrington – The return of Volatility
  • Adalpha Asset Management – Seeking Volatility

    | | Commodity Trading Advisor, Fed, volatility

    “What just happened?” is becoming an all too common phrase for market watchers over the past few weeks.  Whether it be the Fed Chairman giving a talk, interest rate behavior, or a short tweet from the President, markets have been responding aggressively.  Over long periods of time all of these things could often be put on the category of “noise” but in the meantime anyone watching their portfolio can get an ulcer.  … Read more Adalpha Asset Management – Seeking Volatility