Trends in sector rotation have been well covered both as a leading indicator for future equity market returns and also as a tool in tactical asset allocation decision-making. The recent out-performance of the utilities sector and the concurrent under-performance of the consumer discretionary sector this year have sparked some recent comparisons between today‚Äôs market and […]

There was an excellent post yesterday on the Motley Fool site about the death of long-term thinking by Morgan Housel (link here). It is a great, quick read and I recommend it to anyone who invests their money in markets, or just as important, anyone who invests money on behalf of others. The long-term perspective […]

This week saw the VIX rise nearly 2 points as measured in implied volatility, ending the week at 15.76, up from 13.79 on the prior week’s close. Did you know this was the fourth consecutive higher weekly close for the VIX? A VIX rally of that length has not occurred since….almost exactly 1 year ago […]

On Monday of this week, the SPX volatility term structure went into an inverted state whereby the nearest-term option expiries held higher implied volatilities than farther-back months in the expiration cycle. I went back and looked at how the front-month VIX futures contract has performed historically when this phenomenon has occurred. My basis for evaluation […]

With the S&P 500 near all-time highs and trouncing seemingly every major investable asset class, I present you the CBOE S&P 500 PutWrite Index. Rather than owning the stocks of the underlying S&P 500, this index sells at-the-money put options on the S&P 500 and invests the cash proceeds into Treasury BIlls. The concept is […]

Earlier this week on Thursday saw a pretty rare occurrence in capital markets. Seemingly every major asset and asset class was down on the day, with the exception of the U.S. Dollar. Investors that were not 100% in cash coming into the day were guaranteed to lose money (and from the tape quite a bit […]

The market cap-based weighting methodology of the S&P 500 index has long been the source of the index’s popularity as a benchmark among market participants. Indeed, the ability to passively track this index on huge scales with comparatively lower transaction costs to other approaches have attracted tens, if not hundreds, of billions of dollars in […]


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