Tag Archives: volatility

Now That Everyone’s Been Pushed into Risky Assets…

If we had to summarize what’s happened in eight years of “recovery,” we could start with this: everyone’s been pushed into risky assets while being told risk has been transformed from something to avoid (by buying risk-off assets) to something … Continue reading

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Sorry, Central Banks: Risk and Volatility Cannot be Extinguished

The unspoken claim of central bank policy is that risk can be extinguished by intervention/manipulation: once the Fed has your back, i.e. is supporting the market, risk disappears, and the easy profits flow to those who buy the dips with … Continue reading

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Why Did Oil Prices Just Jump By 27 Percent In 3 Days?

Oil prices have posted their strongest rally in years, jumping an astounding 27 percent in the last three trading days of August. While much of the recent price movement defies reason and is enormously magnified by speculative movements by traders … Continue reading

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Thank Goodness Everything’s Fixed

Thank goodness everything’s been fixed. Now that the bigshots in the Eurozone have given Greece the Humphrey Bogart treatment– When you’re slapped, you’ll take it and like it, Bogart’s line as he bullied Peter Lorre in The Maltese Falcon–and a … Continue reading

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Wedges and Triangles: Big Move Ahead?

The central bank high is euphoric, the crash and burn equally epic. Just out of curiosity, I called up a few charts of key markets: stocks (the S&P 500), volatility (VIX), gold and the U.S. dollar (UUP, an exchange-traded fund … Continue reading

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Complacency Reigns Supreme–Nothing Can Possibly Go Wrong, Right?

So by all means, buy the dip now that the VIX soared in full-blown panic from 12 to 17. One of the more remarkable features of the Bull market in stocks is the ascendancy of complacency and the banishing of … Continue reading

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Who Left the Crash Window Open?

Can stocks keep hitting new highs even as sales and profits fall? Given that we live in a world where a modest 3% decline in the stock market triggers panicky demands for more quantitative easing (QE 4), few observers expect … Continue reading

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The Rubber Band Is Stretched–Will It Break?

A rubber band can remain stretched for some time, but it takes some force to keep it stretched. The consensus is anticipating a smooth sleigh ride for Santa’s traditional stock market rally from November to year-end. But the rubber band of … Continue reading

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The Inevitable Stock Market Reversal: The New Normal Is Just Another Bubble Awaiting a Pop

Is the New Normal of ever-higher stock valuations sustainable, or will low volatility lead to higher volatility, and intervention to instability? Though we’re constantly reassured by financial pundits and the Federal Reserve that the stock market is not a bubble … Continue reading

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The Essential Role of Volatility, Stress and Dissent

The individual or system that never experiences dissent, volatility or stress is systemically unhealthy and increasingly prone to sudden “gosh, I didn’t see this coming” collapse. To say that volatility, stress, dissent are not just healthy, but essential for maintaining … Continue reading

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