Options Shift From Hedge to Market Volatility Engine
Options were traditionally used for risk management purposes. Yet their proliferation and widespread use by traders and gamblers have created a market structure that increasingly results in significant volatility and enormous price changes for entirely non-fundamental reasons. Thus, the risk management tool has become a market risk in and of itself. https://t.co/CEH27BgD02
Herding, Momentum, and Options Push Prices Up Then Down
Let's look beyond fundamentals and narratives to better understand how herding, momentum, and option delta and gamma can systematically drive prices higher and eventually lower. https://t.co/PbY8yW5eKT
Private Credit Turmoil Makes BDCs More Attractive
The poor sentiment toward private credit funds has dragged down many high-quality BDCs, as well as weaker ones. The chaos and bad press surrounding private credit funds are not reasons to avoid BDCs. In fact, we think it’s a...
Private Credit Strain May Tighten Liquidity, but 2008 Repeat Unlikely
Due to faulty marketing targeting inexperienced retail investors, private credit problems are making headlines. With the headlines, broader financial system confidence and sentiment are in play. If private credit concerns spread, liquidity in the traditional and shadow banking...
QE: Reverse Robin Hood, Stealing From Poor, Enriching Rich
Bravo, Mr. Warsh, for speaking the truth and not repeating Bernanke's jibberish. "QE is reverse Robin Hood. It’s policy that steals from the poor, to give to the rich." - Kevin Warsh "Higher stock prices will boost consumer wealth and...
Tight Derivative Web Made Subprime Defaults Collapse System
"The web of leverage and derivatives surrounding subprime mortgages was so tight that pulling on one thread unraveled the entire financial structure." "While it’s fair to say that defaulting subprime borrowers were certainly the match, the bonfire, fueled by...
Markets Care About Oil, Not Iran's Political Outcome
Regarding Iran, the market's primary concern is oil prices. Whether we "win", " lose", or fail to meet our objectives has little to no relevance for the market.
Apple May Be Mirroring Google’s Cautious AI Wait
Might Apple be taking a page out of Google’s playbook and waiting in the weeds for the AI industry to mature? https://t.co/zaYi5uqYwW
Apple Knows Success Isn’t About Being First
https://t.co/zaYi5uqYwW Apple executives understand something their peers do not; the race rarely goes to whoever is first out of the gate.
Apple Chooses Discipline Over Hype in AI Strategy
The Apple AI Strategy: Discipline Over Hype Apple can easily self-fund AI innovation on a massive scale, as its competitors are doing. Yet it hasn’t. Why? https://t.co/zaYi5uqqHo
Calm Mind, Strong Man, Smarter Trades
“Keep this thought handy when you feel a fit of rage coming on—it isn’t manly to be enraged. Rather, gentleness and civility are more human, and therefore manlier. A real man doesn’t give way to anger and discontent, and...
Beta: A Flawed Compass when Risk Matters Most
Beta is useful but imperfect. And, unfortunately, its imperfections tend to matter most when the need to manage risk is most critical. Simply, beta can be a broken compass when you need it most. https://t.co/xPNx2wvXwJ https://t.co/GFB8SiBOJR
Junk Credit Spreads Widening, Still Early In Trend
Junk credit spreads are certainly widening, but if this is going to become a meaningful move, we are not even out of the first inning. https://t.co/KwASCn8uAh
Private Credit Strain May Force Fed to Backstop Mania
Will private credit stress push the Fed to once again backstop irrational exuberance ? https://t.co/dnERejAvPo
Fed Still Engaged in QE Despite Denials
BESSENT: A LONG WAY FROM FED GOING BACK TO QE Talk about blatant BS- the Fed is doing QE