Macro & Volatility™

Josh and Michael discuss whether the Rotation Trade is sustainable, if Russell is the right bedfellow and if thematic pairs trades are riskier than long indices.

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Josh and Michael discuss how FX volatility is not reflecting the same political concerns as French bonds, skew as a better indicator of risk than volatility in FX and how the VIX is low but the IV-RV spread is high in the US.

Josh Silva and Michael Purves discuss Powell's dovish Fed commentary and its impact on the yield curve, potential rate cuts, and long-term policy rates. They delve into equity volatility, inflation factors, and expectations for the upcoming June Fed meeting.

Explore the surprising rise of gold prices despite economic challenges, triggered by Asian central banks and low volatility. Discuss the impact of central bank actions on commodities like gold, copper, and oil amidst geopolitical risks. Analyze the influence of strong earnings on stock market performance amid market concerns.

The podcast discusses how the Federal Reserve impacts market uncertainty and equity volatility, creating optionality in market dynamics. They analyze the correlation between equities and bonds, explore the potential of a commodity supercycle to spur inflation, and emphasize the importance of strategic decision-making by the Fed in handling ongoing supply constraints.

Exploring the effects of rising interest rates on the VIX and equity options market, historical trends of buying calls in the 90s market, the challenges for the Federal Reserve in managing volatility levels, and the constraints on future easing measures due to stubborn inflation levels.

Michael Purves and Josh Silva analyze the impact of rising interest rates on the economy, VIX, and equity market volatility. They delve into historical comparisons with the 90's tech-driven rally, discuss potential implications of 4.5% or 5% Treasury Yields on VIX and stocks, and explore the effects of inflation control on fixed income and equity markets.

The podcast delves into the dispersion trade's impact on VIX spikes, drawing parallels to past market volatility. It explores risks in leveraged short volatility trades and discusses hedging strategies like purchasing puts or investing in the VIX. The conversation also highlights opportunities in purchasing stocks strategically during market shifts.

Financial experts Michael Purves and Josh Silva dive into topics such as the upcoming Fed meeting, market expectations, equity market dynamics, interest rate effects, Fed mandates, rate volatility, VIX behavior, and the 'Dual Goldilocks' concept.