Just in: BlackRock just launched a "buffer fund", a stock ETF with a 100% downside hedge.
The iShares Large Cap Max Buffer Jun ETF started trading on Monday under the ticker symbol $MAXJ What’s a buffer fund? These funds offer hedged exposure to stocks by limiting losses while also capping gains, and they’re not exactly a new concept. Since their inception, they’ve attracted industry giants like BlackRock, and they’ve drawn about $5 billion in inflows so far this year. But even before they came around, investment banks were offering their clients “structured notes” – a hybrid product that combines bits and pieces of different financial instruments into one to create customized risk-reward profiles. While there are many different types of structured notes out there, “buffer participation notes” are among the most popular. The notes and buffer funds work in the exact same way – they’re just packaged as different investment vehicles. Having said that, buffer funds are a lot more accessible for retail investors. Buffer participation notes, like most structured notes, are typically offered by investment banks only to sophisticated, high-net-worth clients. Buffer ETFs, by contrast, can be bought and sold just like any ordinary stock. Source: Finimize
Apple's Price to Sales ratio just moved above 9, the highest valuation level in company history.
$AAPL Source: Charlie Bilello
A reminder of top strategists 2024 outlook for the S&P 500
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Semiconductor production by location
Source: Mike Zaccardi
The first half of the year was a Tale of 2 Markets...
-Best of times: US large cap growth stocks, short duration bonds, US Dollar -Worst of times: Small caps, value, international, long duration bonds, Japanese Yen Source: Charlie Bilello
The Japanese Yen is at its lowest level since 1986 against the US Dollar, losing 53% of its value from the 2011 peak.
Markets know that japan has a binding constraint: the fiscal one. They thus need to intervene to keeps yield low which means that they can NOT intervene to strengthen the yen. And so the Yen keeps falling... $JPYUSD Source: Charlie Bilello, Robin Brooks
US yield curve steepens sharply after US presidential debate w/PredictIt’s live betting odds have jumped in Trump’s favor to almost 60%
US 2s/10s spread jumps by 7bps to -36bps. Source: HolgerZ, Bloomberg
Wondering why the US stockmarket is eating the world?
Here's a visualisation of the digital trade divide... Markets & Mayhem
