IBKR Podcasts Can December Deliver Market Cheer?
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Dec 3, 2025 Kevin Davitt, Head of Index Options Content at NASDAQ, shares his insights on market dynamics as year-end approaches. He discusses the optimism surrounding December and the implications of NASDAQ 100 strength, while warning of potential risks like Broadcom's earnings and Japan's carry trades. Davitt dives into volatility trends, urging traders to be strategic with hedging. He also explores the evolving role of crypto as a risk barometer and the challenges posed by yen-funded carry trades in today's market.
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Year-End Strength May Persist
- December often shows strong performance, especially when the year-to-date is already positive and the NASDAQ 100 has outpaced peers.
- Kevin Davitt notes December has historically favored the NASDAQ 100 and optimism tends to persist into year-end.
Prepare For Macro Headline Risks
- Watch macro risks like Japanese yield moves, Broadcom earnings, delayed unemployment data, and the next Fed decision.
- Plan and hedge opportunistically because headline shocks can still disrupt year-end rallies.
Volatility Reprices Faster Than Before
- 2025 volatility swung from single digits to extremes and back, compressing and expanding rapidly.
- Kevin Davitt believes markets now reprice risk faster, rewarding tactical traders who monetize volatility.