Market Perspective

Cuts Can Hurt

06/07/2023 Market Perspective

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. ...

Lower, not Low: An Examination of Recent Volatility Trends

05/10/2023 Market Perspective

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 ...

Steady Turbulence

04/18/2023 Market Perspective

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 ...

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

03/10/2023 Market Perspective

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 ...

Is it 1963 or 2002?

02/09/2023 Market Perspective

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 ...

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

01/18/2023 Market Perspective

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, ...

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

12/09/2022 Market Perspective

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 ...

Is the Index Option Market Creating Volatility?

11/09/2022 Market Perspective

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 ...

Are Equities On Sale?

10/07/2022 Market Perspective

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 ...

Monetary Policy Outlook Shifts Volatility Expectations Higher

09/08/2022 Market Perspective

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 ...