An important chart by J-C Parets >>> High Beta outperforming Low Volatility stocks is usually something we see in healthy market environments.
This year, however, High Beta has been struggling to make any progress vs their Low Volatility counterparts. "Beta" is essentially how volatile a stock is relative to its benchmark. So High Beta think $SMCI, $NVDA, $AMD, etc.. You have half the S&P500 High Beta Index in Technology and another 17% in Consumer Discretionary. In contrast, for Low Volatility think Berkshire Hathaway, Coca-Cola, Visa, Procter & Gamble. You'll find a lot of Financials, Consumer Staples, Utilities and Industrials in this group. Source: J-C Parets
Is the VIX preparing for another pop?
$VIX During an election year, it is the norm for volatility to pick up in September. Source: Trend Spider
Crude Oil falls to lowest price since January
Source: Barchart
Japanese Stocks have both fallen and risen more than 20% in the last month
Source: barchart
Short Volatility etf $SVIX Assets Under Management are surging
Aug 2024: $600M Q1 2024: $140M Q1 2023: $88M Q1 2022: $22m Source: Bloomberg, Lawrence McDonald
Fear Index Vix dropped 27.3% this week, most since Nov 2023 as recession fears have faded and bulls are firmly back in control of the narrative.
Source: Bloomberg, HolgerZ
The VIX is now LOWER than it was before August 1st.... what a round trip...
Source: TradingView
The $VIX has declined 58% (from 38.57 to 16.19) over the last 7 trading days, the biggest 7-day volatility crash in history.
Source: Charlie Bilello
