Here’s a story you may have heard.
Median wages and living standards are stagnant and by some measures they have worsened, having decoupled from productivity growth for several decades. Read more
Crowded trade alert.
Chris Cole, of volatility fund Artemis Capital, has an insightful piece in the latest edition of the CFA Institute Conference Proceedings Quarterly warning about one of the most popular trades of recent times: the shorting of volatility via Vix ETPs.
The speculative shorts on Vix futures as a percentage of open interest, for example, are already running at an all-time high. In Cole’s mind this now equates to the shoeshine boy trade of the modern era.
One of the ironies, he also notes, is that the trade simply synthesizes a much less efficient version of a 3-4 times leveraged position on the S&P 500. Read more
How to tell that serious investors are yet to take the Morgan Stanley robot car wonderland seriously? Insurance companies still have value.
The point is this: where we’re going we’ll still need roads, but there won’t be (much) call for car insurance.
Moreover, insurers are going to be the agents of their own demise. They have no choice, the logic of robots is just too compelling, and the process has already begun. Read more