By Jon Sindreu WSJ Fri., Jan. 11, 2019 In the stock market, it looks like an ideal time to be the insured rather than the insurer. Equities have been extremely volatile since October, as investors have panicked about a potential U.S. recession, trade tensions and a slowing global economy. This has led to a jump in the Cboe Volatility Index or VIX, known as Wall Street’s “fear gauge” because it tracks the expected daily swings in the S&P 500 index over the next 30 days using options contracts. Yet the VIX still doesn’t look as elevated as it should be. After recently spiking to above 35, it’s back below 20. This may look high, but it’s significantly below where the actual volatility of the S&P 500 has been during the past 30 days. Situations like these are rare windows of opportunity, because options prices tend to overestimate future realized volatility. It’s like the insurance industry: Over time, most people who … [Read more...] about Time to Buy Stock-Market Insurance
The home-goods company had a massive day on Wall Street. Andrew Osterland Published 4:25 pm CST, Thursday, January 10, 2019 Photo: Michael Brochstein | Getty Images Photo: Michael Brochstein | Getty Images Image 1 of / 1 Caption Close Image 1 of 1 Photo: Michael Brochstein | Getty Images Bed Bath & Beyond Was a Monster in the Stock Market Today. Here's Why. 1 / 1 Back to Gallery Bed Bath & Beyond Inc. was a monster in the stock market today, rising 16.56 percent -- by far the biggest gain on the Entrepreneur Index™. The specialty retailer beat earnings estimates by only a penny, but gave a surprising outlook on 2019. The company said it expected earnings for this year … [Read more...] about Bed Bath & Beyond Was a Monster in the Stock Market Today. Here’s Why.
A team at Bank of America Merrill Lynch has been examining the stock market’s recent wild swings using a “news-based approach.” It looked at daily market wrap reports from Bloomberg News, and found there’s been no singular event driving the recent volatility, but rather five main drivers. “In light of ongoing volatility, we evaluate the main market drivers using an event-study approach that attributes daily market moves on the basis of news reports from the financial press,” Aditya Bhave and Anna Zhou, economists at the firm, told clients in a report. For market reporters, it’s work. For Bank of America, it’s news you can use. A team of Bank of America Merrill Lynch economists has formed a proprietary, news-focused model to measure what’s been driving the markets crazy since US stocks peaked just before the start of the fourth-quarter. By analysing daily market-wrap reports from Bloomberg News since September and creating a … [Read more...] about Bank of America is using the news in a unique way to uncover what’s driving the stock market
Fund managers running billions of pounds showed the scars of December’s stock market rout today after one of the worst quarters in recent memory. Asset managers Jupiter Fund Management and Polar Capital revealed gloomy quarterly figures with fund outflows and lower assets under management following a major sell-off of stock markets last month. Savers are increasingly wary of markets due to wild stock price swings and falling returns. Stock markets had a terrible December, with the S&P 500 down 9% — the worst month in nearly a decade — and the FTSE 100 4% lower. UBS analysts called the period “one of the worst quarters in recent years for European asset managers” as it lowered earnings per share forecast for a basket of fund stocks. Jupiter, led by chief execuitve Maarten Slendebroek, said assets under management fell by £5 billion during the period to £42.7 billion. Most of that — £3.5 billion — was … [Read more...] about Fund managers count cost of December’s stock market fall
European stocks rally despite fears of recession in Germany Shoppers spent a record £29.3bn at supermarkets over the 12 weeks to December 30 Mixed stocks in Asia as stock rally eases and Samsung issues profit warning Ex-Nissan's Carlos Ghosn says he is ‘wrongly accused and unfairly detained’ in first court appearance Geostrategic dystopia: is this the year the world falls apart? Pension auto-enrolment is working but there is much more to be done Stock markets in Europe and the US were buoyant on Tuesday as progress on US-China trade talks offset concerns about the state of the German economy. German industrial production was worse than expected in November, down for the third consecutive... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium article … [Read more...] about Stock markets rally despite poor industrial production in Germany