All articles tagged with #investor strategies
Investors are favoring vanilla options like S&P 500 put spreads over VIX calls for hedging due to cost and reliability concerns, amid a market rally driven by dovish Fed signals and upcoming Nvidia earnings. The steep VIX futures curve and recent flows into long VIX ETPs have influenced this shift, with traders cautious about volatility spikes and the impact of upcoming economic data.
US equity markets experienced significant volatility this week, with the Dow Jones Industrial Average dropping 600 points in its worst trading day of 2024. Experts Deiya Pernas and Ken Mahoney discuss the risks of investor complacency and the importance of diversifying portfolios. While large-cap tech stocks have shown strong performance, small-cap equities have lagged. Mahoney emphasizes the potential in tech investments despite their higher volatility, while Pernas warns of the broader market's complacency and suggests looking for value in underperforming sectors.