Hedging demand has fallen sharply with the cost to protect against a market selloff down by around 10%, or one-standard deviation, tumbling to the lowest ever in data starting in 2013
Demand for tail-risk hedges that pay out in an equity fall as precipitous as 30% has also dropped and is hovering around the lowest level since March.- Bloomberg
As highlighted by The Kobeissi Letter, a record ~40% of all US homes currently do NOT have mortgages
At first, this seems like great news, but it really just emphasizes how UNAFFORDABLE this market is. Currently, a record ~35% of housing market transactions are all cash purchases. In other words, this market is becoming ONLY affordable for those who are buying with CASH. As interest rates hit 20-year highs and home prices are up 30%+ since 2020, affordability is only getting worse. This is called an affordability crisis. Source: The Kobeissi Letter
Hong Kong local bank rate (HIBOR) jumped to its highest level in 16 years
Source: Barchart, Bloomberg
Nasdaq has now listed 0DTE Options (Zero Days to Expiry) for ETFS tracking silver, gold, oil, natural gas, and treasuries. Let the games begin! 🎰
Financial Times >>> "Trading in a controversial type of derivative known as “zero-day” options is spreading to Treasury and commodity markets, as Nasdaq and other exchange groups try to replicate a boom that has transformed trading in US stock indices. Nasdaq this week listed a series of new options contracts tracking some of the most popular exchange traded funds investing in gold, silver, natural gas, oil and long-term Treasuries. Options contracts give investors the right to buy or sell an asset at a fixed price by a given date. Trading a contract on the day it expires is known as zero-day trading and can be used to bet on or hedge against extremely short-term market moves. Zero-day trading in options tied to the S&P 500 index boomed in popularity during the coronavirus pandemic. Initially viewed as a temporary phenomenon driven by speculative retail traders, the surge sparked concern among some analysts and regulators that it could create systemic risk by exacerbating market moves. Source: FT, Barchart
Nvidia quarterly report lifts earnings estimates support for mega-cap tech valuations, i.e nvdia / "mag 7" are trading cheaper AFTER Nvidia blowout results
Source: Macrobond, TME
Up again today. Index is up 8%. This group of Chinese stocks is up over 50% in just a few weeks
Source: David Ingles, Bloomberg
Nothing new, but imagine the huge cash pile starts feeling the equities FOMO...
Source: BofA, TME
10 Accounting KPIs everyone should know
By Compounding Quality / Chris Quinn
