We have seen the dislocation of financial markets at breakneck pace within a plethora of imploding asset values and credit balloons. Markets are operating under extremely stressful conditions and experiencing large, widespread asset mispricing. Significant market dislocations have become not uncommon over the past 20 years. They can provide attractive buying opportunities for those prepared to provide liquidity (at a discount) when sellers demand. It’s all down to timing and capitalizing on dislocations has the potential to enhance a portfolio’s … Continue reading “Using The Market Dislocation Index to Enhance Portfolio Risk Adjusted Returns”
Fear at a Crescendo with Record Put Option Contracts on U.S. Stocks, ETFs and Indexes
Fear gripped global final markets Friday with the global leveraged speculating community awash with derivatives. In the US alone there were 34 million put-option contracts traded Friday across U.S. stocks, exchange-traded funds and indexes. Cboe Global Markets data said this was the highest on record going back to 2008. Put options are used by to hedge portfolios or speculate on lower prices. Fear is in control but is it at a point of saturation contrarians are asking. The overhanging risk … Continue reading “Fear at a Crescendo with Record Put Option Contracts on U.S. Stocks, ETFs and Indexes”