In the week ending 23 February, 2018, more hedge funds came forth sharing they were on the right side when
volatility spiked in early February.
Volatility spiked in February and March but has now leveled off.
This year, we've seen
volatility spiking in stocks.
Global economic data was largely positive amid
the volatility spike in the first part of the month.
Not exact matches
Traders are instead using the 44 % single - day
spike in the CBOE
Volatility Index — or VIX — as a reason to pile into wagers that the measure will come back down.
Or is it the case that
spikes in volatility cause reductions
in trading volume?
The Cboe
volatility index, a popular gauge of market fear,
spiked above 38
in early February.
«People looking for a big bounce
in the dollar from the
volatility spike must be feeling pretty depressed right now,» said Kit Juckes, chief FX strategist at Societe Generale
in London, referring to the dollar's losses
in recent sessions.
Silverstein: So is this
spike in volatility — is this a turning point?
Such
spikes in stock market
volatility usually aren't one - off events and tend to be followed by aftershocks, said Olivier Korber, a Societe Generale FX and derivatives strategist.
Davis told CNBC
in October that so many investors were short
volatility that a mild uptick
in market uncertainty could lead to an exaggerated
spike in volatility.
Davis, who spoke with CNBC at the Sohn Conference
in October, then warned that so many investors were shorting Cboe's
Volatility index (VIX) that a mild uptick in market uncertainty could lead to an exaggerated spike in v
Volatility index (VIX) that a mild uptick
in market uncertainty could lead to an exaggerated
spike in volatilityvolatility.
The stock market's slump that month prompted the largest one - day
spike in the Cboe
Volatility Index (known as the VIX), as traders who had bought products designed to profit off a subdued VIX hedged against further losses.
But despite the many corrections and
spikes in volatility during this cycle (from March 9, 2009, through June 29, 2016), the S&P 500 Index hasn't collapsed.
Assuming this continues — i.e. we experience episodic
spikes in volatility — investors may want to consider adding more quality stocks to their equity portfolio.
With political uncertainty on the rise
in D.C., will market
volatility spike?
The selling has extended into other asset classes, notably commodities and high yield, and has been accompanied by an abrupt
spike in market
volatility.
While most investors who have a long - term plan probably don't need to make any portfolio changes
in anticipation of a
spike in market
volatility, some more active investors may want to take action to prepare for a correction.
Meanwhile, it could be argued that the
spike in volatility is a somewhat overdue response to slower economic growth and deteriorating credit market conditions.
Market
volatility, which has been historically low in recent months, spiked, with Cboe Volatility Index, commonly considered a gauge of investor fear, jumping by more than 10
volatility, which has been historically low
in recent months,
spiked, with Cboe
Volatility Index, commonly considered a gauge of investor fear, jumping by more than 10
Volatility Index, commonly considered a gauge of investor fear, jumping by more than 100 percent.
Assuming we continue to experience episodic
spikes in volatility, investors may want to consider adding more high quality companies to their portfolio.
But did the
spike in volatility reflect the fundamentals?
In the past, policy uncertainty has been more likely to coincide with a significant spike in volatility when monetary and financial conditions were tightenin
In the past, policy uncertainty has been more likely to coincide with a significant
spike in volatility when monetary and financial conditions were tightenin
in volatility when monetary and financial conditions were tightening.
With the Dow deep
in the red and
volatility spiking, «sell...
Indeed,
volatility measures have
spiked to multi-month highs lately, with 2016 experiencing the worst start to a year
in market history, according to Bloomberg data.
Their recent lessons include a dramatic
spiking of
volatility, the reactionary pricing of an exchange - traded note (ETN), some forced liquidation, and a blisteringly fast correction
in stock prices.
I expect that we'll gradually cover portions of the short - call option side of our hedges (leaving the defensive puts
in place) if the market continues lower without a significant
volatility spike.
With the Dow deep
in the red and
volatility spiking, «sell
in May» and «avoid the midterm election cycle» sound like timely advice.
While an extreme
spike in the DXY would likely cause some
volatility in the short - term, there is very little evidence that a strong dollar will prohibit stocks from advancing.
China — the world's second - largest economy — grew at its slowest annual pace
in approximately a quarter - century
in 2015, with China's stock market
volatility spiking, and the renminbi sharply depreciating versus the U.S. dollar.
Markets remain buoyant despite mid-October's
spike in the
volatility of most asset classes.
On 15 October, stock market
volatility spiked to levels not seen
in more than two years.
Apart from the gyrations, Monday was also distinguished
in another respect: There was no obvious catalyst for the
spike in volatility.
No doubt you will have noticed that
in the last week or so we've experienced a significant
spike in market
volatility.
«All of this has really triggered a
spike in volatility because it's brought into question whether higher interest rates are going to curtail the global growth story or erode corporate profitability,» said Bangsund.
Bottom Line: While I can see rates falling later
in the year, it would likely be preceded by a
spike in volatility and higher interest rates.
The VIX index — Wall Street's so - called «fear gauge» because it measures how much
volatility investors expect
in the future — had
spiked above 50 early Tuesday, quadruple where it was about two weeks ago, before settling at 25 late Wednesday and them ramping up to 34 by late Thursday.
ECB President Draghi has appeared quite relaxed about the recent
spike in yields, arguing that higher
volatility is to be expected during periods of ultra-low interest rates.
So on dips with decent
spikes in volatility like we had
in October and mid-December provided great opportunities to sell puts pretty far out of the money
in the SPY ETF.
Furthermore, there had been a significant rise
in hedging activity leading into the event, with a
spike in the cost of such hedges as measured by implied option
volatility.
The stock market has taken investors on a wild ride
in recent days, but Mike Wilson, Morgan Stanley's chief investment officer and chief U.S. equity strategist, doesn't think the sudden
spike in volatility portends the start of a bear market.
This is no easy feat — a quickening pace of rate normalization
in the past has often led to
spikes in volatility.
Early February's market meltdown and the VIX's giant
spike have sparked some broader debates and concerns about market stability
in general and
volatility specifically.
Market
volatility, which has been historically low in recent months, spiked, with the Cboe Volatility Index, commonly considered a gauge of investor fear, jumping by more than 10
volatility, which has been historically low
in recent months,
spiked, with the Cboe
Volatility Index, commonly considered a gauge of investor fear, jumping by more than 10
Volatility Index, commonly considered a gauge of investor fear, jumping by more than 100 percent.
It's a legitimate concern, considering the
spikes in volatility this year caused by fears of global economic slowdown, dissolution of the European Union and policy reversal by the Federal Reserve.
Historically,
spikes in volatility have represented buying opportunities.
In the event of a large enough
volatility spike such strategies will blow up.
Like
in the United States,
volatility spiked over the past month.
But that sacrifice is worth it, says Egan,
in case of economic shocks, such as market
volatility spikes, or a U.S. dollar plunge.
Many are pointing a finger at Washington for the recent
spike in volatility.