Bloomberg (April 12)
“The feel-good days for global markets at the end of March are firmly over.” Suddenly, everyone is afraid of economic slowing. “With monetary support rapidly receding and recession risks rising, investors are hunkering down. Companies resilient to an economic slowdown such as health care are back in favor. Ditto cash and dividend-paying stocks. Meanwhile, demand for hedging is creeping up in the options market.”
Tags: Afraid, Companies, Dividends, Feel good, Global markets, Health care, Hedging, Hunkering down, Investors, March, Monetary support, Recession, Risks, Slowdown
Reuters (August 29)
“The prospect of a no-deal Brexit is becoming increasingly feasible in the eyes of investors who are hedging against the risk of the currency tanking if Britain is left isolated from the EU, its largest trading partner.” Bank of America Merrill Lynch has warned that central bank selling of more than 100 billion pounds in reserves “could be a major catalyst for a significant sterling downturn” should the UK leave the EU without a deal.
Tags: BAML, Brexit, Central bank, Currency, EU, Hedging, Investors, No-deal, Reserves, Risk, Sterling, Trading partner, UK
Institutional Investor (March 19)
Volatility divides. Too much and it can be catastrophic. Too little and returns shrivel.” Increasingly investors are moving beyond hedging volatility to “trading volatility itself.” While specialists have been doing this for some time, trading volatility has “become more mainstream” since 2008 and the “go-to tool” many investors use to trade volatility is now “the VIX itself.”
Tags: Catastrophic, Hedging, Investors, Mainstream, Returns, Trading, VIX, Volatility
Euromoney (November Issue)
“Janet Yellen is eminently well qualified to lead the Federal Reserve. But investors should not assume that continuation of policy as normal comes without risk. Her dovish stance on inflation is worth noting and hedging against.”
Tags: Dovish, Federal Reserve, Hedging, Inflation, Investors, Janet Yellen, Policy, Qualified, Risk
