For Saudi Arabia, the deal made perfect sense, not only by protecting the regime but also by providing a safe, liquid market in which to invest its enormous oil-sale proceeds, known as petrodollars. The U.S. benefited, as well, by neutralizing oil as an economic weapon. The agreement enabled the U.S. to print dollars with little adverse effect on interest rates, thereby facilitating consistent U.S. economic growth over the subsequent decades.
The Coming Renaissance of Macro Investing – (Barrons)
What happens when you create a quadrillion dollars out of thin air, and then blow it up? The answer, says Paul Wilmott, a quantitative finance expert and this week’s guest on our Masters in Business podcast, is you have a structural problem and potential financial crisis.
Quant Finance Run Amok – (Bloomberg)
Additionally, the number of VIX contracts outstanding just hit a fresh record. Wagering on equity swings has become increasingly popular this year as the gauge of stock swings heads for its lowest ever annual average. While the VIX is up this month, history shows that it tends to fall in the fourth quarter.
VIX Shorts Hit New Record High As S&P Surpasses 2017’s Most Bullish Forecast – (ZeroHedge)
We’re both reasonably skeptical and confused and bullish at the same time right now.
An Evening in Wonderland – (Reformed Broker)
From Oliver Stone’s epic Wall Street to the hilarious Trading Places and recent Scorcese hit The Wolf of Wall Street, the topic of finance has inspired many a classic film. It’s no surprise when you ponder on the varied world existing within finance, which takes in everything from making ends meet to making personal millions.
10 Best Films About Finance – (ABC Finance Limited)
That’s actually a trick headline, as you can’t trade the VIX directly. It’s just an index of options prices. But you can invest/trade in products that track the VIX, like VIX futures, VIX ETFs, inverse ETFs, and more (here’s an in-depth research report). It’s called trading volatility, and with seemingly everyone giving it a shot of late (Billions are in VIX futures-related ETFs), we thought a nifty flowchart of just how to proceed would be worthwhile.
How to Trade the VIX (FlowChart) – (RCM’s Attain Alternatives Blog)
One of the most common questions we get asked when someone is first learning about Managed Futures is whether Managed Futures and High Frequency trading are one in the same. To that, we say: not in the slightest.
Managed Futures is Not High Frequency Trading – (RCM’s Attain Alternatives Blog)
The only way out? Invest in your own destruction. In this context, the FANG stocks are not a gimmick or a fad, they’re a f***ing life raft. Market commentators rhetorically ask aloud what multiple should investors pay to own the technology giants. That’s the wrong question when people feel like they’re drowning.
Just own the damn robots. – (Reformed Broker)