The Israel-Hamas Conflict, House Speaker Vote, and Pension Fund Investments 10/11/23
Oct 11, 2023
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Tal Jacobson, CEO of Perion Network, shares the company's response to Israel-Hamas conflict. Stephen Myrow of Beacon Policy Advisors discusses the House Speaker vote. Steven Meier from NYC Retirement System talks about pension funds and investments. Topics include Israel's ongoing conflict, business climate, and effects on Israeli companies.
Despite recent geopolitical events, volatility has remained low, which is unusual.
Mega cap stocks provide market stability and resistance to significant sell-offs.
Deep dives
Potential impact of geopolitical events on volatility
Despite recent geopolitical events such as Russia-Ukraine tensions and the Israel-Hamas conflict, volatility has remained low. Typically, such events would cause a spike in volatility, but this has not been observed.
Outperformance of small caps
Small caps have outperformed in the last week, possibly due to easing bond yield pressures. However, it's still uncertain if this trend will continue.
Opportunities in fixed income
With rising bond yields, bonds are becoming attractive. Opportunities lie in alternative credit or private credit, with floating rate obligations offering potential returns of 10 to 12%.
Mega cap names and market stability
Mega cap stocks, often referred to as the Magnificent Seven, such as Apple, Alphabet, and NVIDIA, provide market stability due to their concentration and strong options sentiment. The low volatility in these stocks suggests a potential resistance to a significant market sell-off.
Israel enters its fifth day of conflict with Hamas. Perion Network CEO Tal Jacobson discusses his company's response to the situation. Plus, Republicans are set to pick their next candidate for House Speaker today. Beacon Policy Advisors' Stephen Myrow explains. And, pension funds are sitting on the sidelines when it comes to the significant runup in rates. New York City Retirement System's Steven Meier discusses.
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