Tag Archives: The Landscape of Risk
Volatility, Short- and Long-term
This morning’s Financial Times highlighted a study of market volatility suggesting that return and volatility are inversely related — that “the correct response to an increase in volatility…is to exit the market.” This is certainly true in the short run, as the table below confirms. In months when the realized volatility of the S&P 500 was above…
- Categories Equities, Factors, S&P 500 & DJIA, Strategy
- Other Tags
How Hell Freezes Over
Between Christmas and New Year, the familiar roar of events turns staccato and the market is gently buffeted by meager trading volumes; the relentless pursuit of profit that agitates the flight of global capital is sedated. The books are largely closed; the offices of major financial institutions are staffed by fragile acolytes bereft of their titans. Decisions, if…
- Categories S&P 500 & DJIA, Strategy
- Other Tags
Blood in the bourses of Moscow
Things are not all well with Russian equities. The S&P Russia Broad Market Index has lost more than half its value in U.S. dollar terms since the summer. There is figurative blood on the streets. If we were to follow the example of the founding members of the Rothschild banking dynasty, we would be lending…
- Other Tags