Market Perspective

Cuts Can Hurt

There has been much handwringing about the U.S. Federal Reserve’s (the Fed) persistent efforts to tame inflation and tighten monetary policy by increasing interest rates. …

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Lower, not Low: An Examination of Recent Volatility Trends

Apart from the spike associated with the Silicon Valley Bank led banking crisis in March 2023, volatility, as measured by the Cboe® Volatility Index (the …

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Steady Turbulence

Investors are facing many challenges and a new investment landscape. Equity valuations are lower, but not cheap, and volatility levels have shifted higher. On the …

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Real Return Conundrum: Between Rocky Volatility & An Inflationary Hard Place

A combination of higher interest rates and signs of slowing growth are putting pressure on valuations. Even with February’s market pullback, the price-to-earnings (P/E) ratio …

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Is it 1963 or 2002?

As traders and professional prognosticators hang on every word from Federal Reserve officials, anticipate each data release with tense fingers hovering over keyboards and debate …

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Option Writing Premiums Were a Bright Spot in a Dark Year for Investors

The Federal Reserve’s (the Fed) monetary policy transition from accommodative to tightening was sudden – asset purchases to support the economy ended in March 2022, …

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Away from Zero1 – The Not So Mysterious Case of Higher Interest Rates

If the story of 2022 stock and bond market returns was written as a whodunit, the crack detective protagonist would have a primary suspect list …

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Is the Index Option Market Creating Volatility?

Trading volume in S&P 500® Index option contracts set a record in October 2022. As Figure 1 shows, trading volume in options on the bellwether …

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Are Equities On Sale?

Savvy shoppers know a “25% Off” sale is not necessarily a good deal. Is the item discounted from a fair price or did the retailer …

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Monetary Policy Outlook Shifts Volatility Expectations Higher

Daily closing values for the Cboe® Volatility Index (the VIX®) have been below its long-term average of 19.61 less than 10% of the time so …

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