Business

More crappy data and every central banker in the world turning hawkish... BTFD you idiots!!

As we noted earlier... there's only one thing standing...

Other than buying Ethereum, one strategy has stood out in investing circles - selling US equity market volatility, and as Goldman notes, the profitability of vol-selling strategies has accelerated in the last year. With vol at record lows, and after a long-run of success, Goldman unveils its guide to selling volatility, why it's a good idea, and how to do it.

Via Goldman Sachs,

In what is by far the most entertaining research report of the day, Canaccord quant Martin Roberge, essentially admits and apologizes for blowing up the bank's energy client returns in 2017 (with an endless long oil reco), but then - in a bizarre follow up - says that while Canaccord overweight rating on energy has been "costly and like many investors, we feel like throwing in the towel on the group. However, being wrong is not a good reason enough to change one’s stance."

When it comes to Goldman's reaction (function) to the Fed's own reaction function, so to speak, it has been a love-hate, but mostly confused, relationship over the past three months.

First, back in March, Goldman's Jan Hatzius was stunned to note that the market reaction following the Fed's first rate hike was not the reaction the Fed wanted, when "the Fed's 0.25% rate hike had the same effect as a 0.25% race cut" and prompted it to ask if Yellen has lost control of the market.

Following Bank of Canada's Poloz restates his bias for higher rates earlier in Sintra, now BoC deputy Patterson confirmed "the oil shock is largely behind us" and hinted that low rates were no longer needed. This is the biggest spike in the Loonie since March 2016, pushing it back to its strongest against the dollar since early Feb 2017.