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,
So far this year, Small & Micro Cap ETF’s are lagging the S&P 500. Over the past month the opposite is taking place, as small and micro caps have been stronger. Below takes a peak at micro cap ETF (IWC) and the potential bullish pattern it is attempting to breakout from.
U.S. index futures point to a slightly higher open, as markets in both Europe and Asian fall.The EUR surges to one year highs as markets continue to reverberate from Draghi's hawkish comments while yields rose around the globe following similar hawkish comments from Fed speakers on Tuesday.
Throughout the first half of the year, as stocks kept grinding ever higher and Goldman issued one after another bearish equity strategy note, the bank's chief equity analyst David Kostin stubbornly kept Goldman's S&P price target at 2,300. Now, "unexpectedly" with stocks finally cracking with some violent moves in the tech sector after repeated warnings by top Fed bankers that stock "valuations are too rich", moments ago Kostin just raised Goldman's year end price target from 2,300 to 2,400. "reflecting a 1% decline over the next six months."
In the last week, the controversial Hindenburg Omen has started to cluster ominously once again.
Combined with divergent market internals and rates off the zero-bound (and global central bank balance sheets actually shrinking), John Hussman warns of the rising likelihood of an interim market loss on the order of 50-60% over the completion of the current cycle.
As Hussman Funds' John Hussman explains,