Goldman Sachs Traders Assess Election Market Strategies and Volatility With the upcoming election, the Goldman Sachs trading desk has observed that clients are beginning to position themselves for various potential outcomes, particularly leveraging the optionality that arises from the binary nature of the election result. Recently, it has bec...
Understanding the VIX and Volatility Indicators Amid Market Uncertainty The financial media often discusses the daily movements of the VIX, or implied volatility index, and what it reveals about investor sentiment. While this index is frequently mentioned, many investors do not fully grasp what implied volatility truly represents. The purpose...
US Equity Volatility Remains High Despite Recent Sharp Decline Despite a significant drop from recent high volatility, US Equity Volatility metrics still indicate a wide range of potential market outcomes. This ongoing volatility highlights continued challenges for those who have been covering "Short Vol," "Short Gamma," "Short Skew," and "Sh...
Cross-Asset Volatility Surges Amid Geopolitical Tensions Volatility is on the rise across various asset classes, including stocks, bonds, commodities, currencies, and even FX. This surge is not solely due to recent geopolitical tensions but has roots in pre-existing conditions. Volatility had been decreasing overall since October, but in rece...
Volatility Spikes Signal Market Turbulence Ahead Last week, Goldman Sachs trader Brian Garrett observed a notable reaction in the volatility market, signaling a significant increase in their "US Panic Index" and its impact on the spot VIX, suggesting more turbulence ahead for the VIX. This aligns with their previous advice in mid-March to pur...
Bond and Stock Markets Brace for Surge in Volatility Increased volatility is anticipated in the US interest rate and bond markets as they realign with fundamental factors. This shift is expected to lead to higher interest rates and increased stock market volatility, particularly affecting sectors like technology that have longer-duration asse...