One investing theme in 2022 was the failure of tail-risk hedges amid a grinding bear market. The performance of protective put strategies, an oft touted hedge to down markets, was suboptimal. As a baseline example, the CBOE 5% Put Protection ...
Read moreIndustry research has empirically proven different types of calendar anomalies. Most scholars have a difficult time rationalizing these phenomena, and many even dismiss them. In this series, we look to elaborate on these anomalies in the equity market and extend ...
Read moreThe British Pound Sterling (GBP) has experienced historical levels of turmoil over the past month and traded at record lows compared to the dollar. The freefall in the GBP can be attributed to multiple macroeconomic shocks, including higher energy prices ...
Read moreLast July, I wrote about inflation and one of its main drivers, commodity prices. I made the case then that although the Fed was aggressively moving to limit inflation through higher rates, commodity prices had been decreasing sharply since mid-June and ...
Read moreIndustry research has empirically proven different types of calendar anomalies. Most scholars have a difficult time rationalizing these phenomena, and many even dismiss them. In this series, we look to elaborate on these anomalies in the equity market and extend ...
Read moreMeme stocks once again surged in popularity earlier this month. Their temporary comeback recently was led by Bed Bath & Beyond, a stock whose rise began with disclosure of a large position of call options by investor Ryan Cohen, of ...
Read moreThe Consumer Discretionary SPDR Fund (XLY) is down around 30% YTD, the most by any sector this year. The XLY tends to underperform the market in times of economic downturn, as consumers cut excess spending into discretionary goods. Generally, when ...
Read moreJoseph Kennedy, the 35th President’s father, supposedly said right before the 1929 crash, “If shoeshine boys are giving stock tips, then it’s time to get out of the market.” Although most likely apocryphal, it does point out that we all ...
Read moreMarket volatility induced by macroeconomic factors has brought into question the resiliency of today’s retail option trader. The recent bear market has led to sustained losses for these traders across a variety of asset classes, likely reducing wealth along with ...
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