Volatility Headlines

  • There's a surefire way to make a killing on the types of volatility spikes that send stocks spiraling

    BNP Paribas has figured out a strategy that helps investors make money following volatility spikes. The market was recently jolted out of a period of complacency, and BNP says that it was a perfect example of the type of volatility increase that creates opportunity. When the Cboe Volatility Index (VIX) was awakened from its prolonged slumber earlier this month, the consensus was that it was a very bad thing for markets. This was largely due to the cottage industry that had cropped up with the...

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  • Here's a bond strategy for a volatile market

    AP Images The combination of Fed tightening and fiscal stimulus is unusual, so inflation and bond yields could go in either direction in the near future. Suggestion: don't take a long position on bonds. Rates are rising. Hedge against liquidity risk.  Focus on value sectors. These strategies are an unconstrained approach. The recent equity-led spike in market volatility has been a timely reminder of the uncertainty that may arise when unusual late-cycle fiscal stimulus in the world’s largest...

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  • Volatility holds key to bank revenue revival from 2017 slump -survey

    By Lawrence WhiteLONDON, Feb 16 (Reuters) - Revenues at the world's 12 biggest investment banks fell to their lowest levels since 2008 last year, a survey...

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  • Investors are boldly jumping back into an infamous trade that just blew up

    The short-volatility trade imploded last week, as a sharp spike in the Cboe Volatility Index (VIX) wiped out positions. That hasn't stopped investors from continuing to pile into short-VIX products, even on the heels of a stock market correction that the strategy helped fuel. Investors have wasted no time in piling back into a now-infamous trade that recently blew up. They've poured more than $575 million into the ProShares Short VIX Short-Term Futures ETF (SVXY) since the start of the stock...

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  • Low volatility trades will all blow up

    Thomson Reuters Volatility is back in the markets.  Short volatility, as a strategy, has been discredited. Volatility is healthy.  Let’s talk about the crash, or the mini-crash, or the dislocation, or whatever you want to call it. Six percent intraday is close to crash territory, especially when you’ve seen no volatility over the last two years.See the rest of the story at Business Insider NOW WATCH: Why most scientists don't care about these incredible UFO videos See Also:Here's how to get...

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  • Q&A-Volatility creates opportunity in emerging markets -PGIM head

    By Suzanne BarlynFeb 13 (Reuters) - The only thing abnormal that the head of Prudential Financial Inc's asset management unit sees in the recent burst of...

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  • The mysterious trader known as '50 Cent' finally cashed in when the stock market went crazy

    50 Cent's recent windfall was a long time in the making, considering the trader for months made bite-sized bets that expired worthless. The investor's mark-to-market profit finally surged into positive territory when the Cboe Volatility Index (VIX) more than doubled amid a massive US stock market selloff last week. It was a long time coming, but the mysterious investor known as "50 Cent" was finally rewarded for his dogged insistence that the stock market would go completely haywire. 50 Cent's...

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  • History suggests the stock market will be rocky for a while

    Reuters/Todd Korol The Cboe Volatility Index climbed above 50 last Tuesday, one of the highest levels ever recorded. It could be a while before the calm that was in the markets returns, the Deutsche Bank strategists Jim Reid and Craig Nicol say. After years of calm, volatility returned to global stocks last week, especially in the United States. The S&P 500 Volatility Index, or VIX, surged higher, rising above 50 at one point last Tuesday, one of the highest levels ever recorded.See the...

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  • DEUTSCHE BANK: It could take as long as '2593 calendar days' for market volatility to settle down

    The Cboe Volatility Index — or VIX — spiked 84% on Monday last week, its biggest single-day increase of all time. It could now take more than seven years for the VIX to fall back to "normal" levels, according to historical data analysed by Jim Reid and Craig Nicol of Deutsche Bank. A normal level for the VIX is generally considered to be either 15 or 10. On Friday, the index stood at around 30. Volatility returned to financial markets with vengeance this week, as global stocks sold off...

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  • $160 billion hedge fund exec: 'We’ll probably have a much bigger shakeout coming'

    Global markets dived during a rocky week for trading last week. Bridgewater Associates' co-CIO: "We don’t think this shakeout will be over in a matter of days." Fears over tightening central bank policy are expected to drive more volatility. LONDON — One of the most senior figures at the world's biggest hedge fund is predicting more volatility in global markets after a turbulent few weeks for global markets. Bob Prince, the co-chief investment water of Bridgewater, told the Financial Times in...

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  • ALLIANCEBERNSTEIN: Here are 17 stocks you might want to buy when the stock market gets rocky

    Although heavy selling has engulfed US stock markets over the past several weeks, that does not mean investors should exit the market completely, an AllianceBernstein quantitative research team led by Ann Larson wrote in a note sent out to clients earlier this week. Both the Dow Jones industrial average and the S&P 500 tumbled into correction territory as selling on Thursday pushed their slides from all-time highs in excess of 10%. Additionally, the Cboe Volatility Index spiked as high as...

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  • A little spark set off a fire in stocks — now everyone's wondering what's next

    David Gray/Reuters The Dow Jones industrial average ended a wild week up 314 points on Friday, but down over 1,300 points since the close the previous Friday. Goldman Sachs said the volatility explosion that rocked markets Monday won't happen again anytime soon. But other market participants say "market technicals are very negative." One little spark lit a fire that rocked the stock market last week. Now, investors are wondering whether the kindling is exhausted. The Dow Jones industrial...

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  • Fidelity isn't letting clients buy a fund that bets against volatility because there's too much volatility

    Thomson Reuters Fidelity isn't letting its customers bet against volatility because there's so much volatility in the markets.  It's blocking trading of a product that aims to deliver returns that are the inverse of the Volatility Index.  Fidelity isn't letting its customers short volatility via an exchange-traded fund because there's too much volatility in the markets.  The US brokerage announced Friday it would temporarily block customers from buying the ProShares Short VIX Short-Term...

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  • A hedge fund manager who makes a killing when stocks go haywire told us there's about to be a market avalanche

    Markets are at the start of a volatility cycle and will stay unsettled, Jerry Haworth, CEO of London-based hedge fund 36 South, said. 36 South, which gained more than 200% during the 2008 crash, is preparing for a market "avalanche." Losses suffered by fund managers betting on low volatility earlier this week are just the "tip of the iceberg," said Haworth. LONDON – Feedback loops hidden within the structure of global markets are creating the conditions for an "avalanche" in equities, Jerry...

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  • The former Target manager who made millions on a trade that just blew up refuses to throw in the towel

    Seth Golden, a former Target manager, said last year that he'd made millions shorting the Cboe Volatility Index (VIX). After this week's market meltdown, there was some concern over Golden's status, but he says he's just fine and continuing to bet against the VIX. As the stock market suffered through its worst stretch in years earlier this week, readers of Business Insider kept asking one interesting question: What on earth does this mean for Seth Golden? They're referring, of course, to the...

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  • There are 2 reasons why the volatility explosion that rocked markets won't happen again anytime soon

    A spike in volatility exacerbated the worst stock market selloff in years earlier this week. Goldman Sachs highlights two reasons why volatility is now less likely to wreak that type of havoc on the equity market anytime soon. The volatility spike that accompanied this week's market meltdown poured gasoline on an already-raging fire. And while that surge in the Cboe Volatility Index (VIX) made life even more hectic for stock traders, its massive move isn't likely to repeat it self anytime...

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  • Volatility investors: once bitten but not shy

    By Trevor Hunnicutt and Saqib Iqbal AhmedNEW YORK, Feb 7 (Reuters) - Investors burned this week by the steep drop in the value of financial instruments that...

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  • Volatility means trend is no longer the hedge fund's friend in 2018

    By Maiya Keidan and Simon JessopLONDON, Feb 7 (Reuters) - Trend-following hedge funds were stopped in their tracks by global market volatility this week, ...

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