|Bid||42.70 x 600|
|Ask||42.72 x 200|
|Day's Range||42.65 - 42.86|
|52 Week Range||25.59 - 76.24|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.89%|
Stock markets around the world have rebounded from the panic selling that rocked markets between January 26 and February 9. A sudden spike in volatility (over a 100% increase in the S&P 500 VIX) could have forced risk managers to rebalance their portfolios, leading to the sharp sell-off. Equity markets in the US recorded the best weekly gains since 2013.
Equity markets found no respite as global indexes struggled for a second straight week in the week ended February 9. Two days saw a 4% drop in indexes, leading to a huge surge in volatility in equity and bond markets around the world. The week started off with a drop in bond yields, whose rise was a key trigger for the recent market rout. The brief US government shutdown, which ended with the approval of the US budget, is likely to add to the US deficit and affect bond markets.
In financial markets, a 10% drop from a recent high is considered to be a “correction.” For US indexes, January 26 was the day that the markets closed at the highest level. A 10% fall is making investors question that theory. The most interesting observation is the increased volatility in volatility indexes, primarily through volatility-based ETFs and ETNs like the iPath VIX Short-Term Futures ETN (VXX), the ProShares Ultra VIX Short-Term Futures Short (SVXY), and the ProShares VIX Short-Term Futures (VIXY).
Jim Cramer lists four volatility trading instruments that are the "real culprits" behind the market-wide sell-off.
Here are five smart ways investors can protect their portfolios from volatility in the stock market.
For young investors with decades of investing ahead of them, emotional fiddling with portfolios is a bad idea. Market timing is incredibly difficult.
Shares of a popular exchange-traded fund designed to bet against volatility plunged in after-hours trading on Monday. The VelocityShares Daily Inverse VIX Short Term ETN lost 62%, after getting crushed ...
Equity indexes around the globe fell last week, halting their multi-week gaining streak. The key reason was the rout in the equity market, fueled by concerns about rising interest rates that could increase borrowing costs. The Fed left interest rates unchanged at last week’s meeting, but a hawkish statement that followed the meeting made the markets realize the approaching hazard of rising rates.
The FOMC, through its implementation note released with the January statement, announced its decision to allow the open market desk at the Federal Reserve Bank of New York to increase the amount of Treasury (GOVT) securities that are being allowed to expire without rolling over every month. The exercise of trimming the Fed’s balance sheet was taken up to offload the huge amount of Treasury securities that the Fed amassed over the last decade through its QE (quantitative easing) programs 1, 2, and 3.
What Boosted the Leading Economic Index in 2017? The Conference Board uses the average weekly unemployment claims as a key constituent of its LEI (Leading Economic Index). Tracking changes in the employment market gives investors an idea about the economic performance of an economy.
Are We Heading toward a Government Shutdown? After the Democratic victory in Alabama last month, Republican strength in the Senate has dropped to 51, and Republicans would need nine Democrats to back this debt ceiling legislation to avoid a shutdown. President Trump pulled off a last-minute deal in September to get temporary government funding that runs out on January 19.
Every segment of the global financial markets began 2018 on a positive note. The global equity rally of 2017 extended into the first week of the year. Commodity indexes (DBC) moved higher with the help of strong crude oil prices, and the high-yield bond markets moved higher.
This week’s economic calendar starts off with a whisper and ends with a bang—particularly for those looking closely at inflation and the follow-through impact on monetary policy. On Wednesday the all-important Atlanta Fed Business Inflation Expectations report is released. What is on the horizon that could threaten the equity market rally?
Shorting volatility was a winning strategy in 2017 with the Cboe Volatility Index inactive for most of the year. The VIX started the year at the 12 level and averaged 11 for the year. Meanwhile, the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) gained nearly 190%.
Average consumer expectations for business conditions form the only component of the Conference Board LEI (Leading Economic Index) that is not a leading indicator. Consumer expectations are based on two…...
Average weekly unemployment claims are a constituent of the Conference Board LEI (Leading Economic Index). Claims have a 3% weight in the LEI. Weekly unemployment claims, if adjusted for seasonality, give…...
Merrill Lynch barred clients and financial advisers trading on their behalf from buying bitcoin or any bitcoin-related investments including futures and the Bitcoin Investment Trust (GBTC). The price of bitcoin is down about 3% to around $14,600 so far Thursday. The Bitcoin Investment Trust is down 3.5%.