News 

Amid global market volatility, Japan could be one of the best bets in 2019

“Amid global market volatility and slowing growth that other economic giants are facing, Japan could be on a more sustainable path relative to the other countries, Shvets told CNBC on Tuesday” writes Chris Mcgrath for cnbc.com. Japan faces fewer micro and macro economic issues compared to the U.S., Europe and China — and might end up being one of the best bets in 2019, according to Viktor Shvets, the head of Asian strategy for Macquarie’s commodities and global markets team.Relative to the volatility around the world, “Japan is just calm,”…

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Markets News Stocks 

Sell-off forces Credit Suisse to slash 2019 S&P 500 target before year has even begun

“The bank has slashed its 2019 year-end S&P 500 price target to 2925 from 3350” writes Xinhua News Agency for cnbc.com. Recent wild rides in the stock market have forced Credit Suisse to cut its forecast for 2019.”Our lower price target reflects recent volatility, rather than a change in fundamental backdrop.While cutting the stocks’ price target, Credit Suisse kept the earnings per share estimates for 2019 and 2020 unchanged at $174 and $185, representing 6.7 percent and 6.3 percent gains, respectively.The stock market tumbled in recent months on recession fears…

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News Regulators 

Treasury yields slip amid market volatility; Fed meeting ahead

“The yield on the benchmark 10-year Treasury note sank to 2.826 percent while the yield on the 30-year Treasury bond dropped to 3.082 percent” writes Ryan Browne for cnbc.com. The big news for traders this week is the Federal Open Market Committee’s (FOMC) upcoming meeting, where the central bank will set interest rates. The central bank is widely expected to hike rates on Wednesday, however expectations for further rate hikes in 2019 have dampened amid concerns of a potential slowdown in economic growth.Stocks have suffered wild bouts of volatility as…

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Markets News Stocks 

Dow sweeps downward again, with no sign ahead of a Santa rally

“U.S. stock markets again swept downward Monday as the volatility of recent weeks resumed ahead of the holidays” writes Thomas Heath Is for washingtonpost.com. The Dow for last week was down 1.18 percent, the S&P down 1.26 and the Nasdaq down 0.84 percent.The Dow and S&P are down for the year, and the Nasdaq is hanging in positive territory by less than a percent.Toward the end of December, some stocks may be on sale, causing investors to scoop them up and push indexes higher. Source: washingtonpost.com Share This:

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Futures News Stocks 

2018: The year volatility came home to roost

“Asset managers, leveraged funds and other reporting classes that make up the so-called buy side are net long VIX futures” reports businessinsider.com. The Cboe Volatility Index, a widely followed barometer of expected near-term volatility for stocks, has logged an average daily close of 15.8 so far in 2018, up from 11.2 last year.The resurgence was so extreme it derailed several products that employed VIX futures.Speculators’ positions in VIX futures have also undergone a sea change.Some VIX-linked products that thrived in the calm of 2017 went belly up, and the number…

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News 

What Drives Commodity Volatility?

“Commodity volatility tends to be the highest of all the different asset classes” writes Scott Bauer for thestreet.com. With so many powerful forces driving commodity markets, investors and traders don’t often have to wait long for volatility to surface.Commodity markets are closely connected to weather and natural disasters, which can increase volatility.Active traders typically thrive on volatility because when prices are highly volatile, it attracts more speculative and short-term trading activity. Source: thestreet.com Share This:

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Markets News Stocks 

Three low-volatility investing strategies for a highly volatile stock market

“Low-volatility ETFs are built on a portfolio of low-volatility stocks and sectors” writes Simon Maierhofer for marketwatch.com. There are a number of low-volatility ETFs, each using their own methodology.In general, low-volatility ETFs have reduced volatility. Source: marketwatch.com Share This:

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Markets News Stocks 

GOLDMAN SACHS: A formerly controversial and widely criticized trade is making a big comeback — here’s how you can profit before the window closes

“Goldman’s ultimate point is that opportunity awaits those brave traders willing to short volatility heading into year-end” writes Joe Ciolli for businessinsider.com. What that’s done is open up an opportunity to buck popular convention and — wait for it — short volatility once again, the firm says.That erased billions of dollars from wildly popular investment products used to short volatility.Then, in the aftermath, as investors started creeping back into the trade, they once again denounced the trade.That was in February, when a market shock caught traders off guard, forcing them…

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