Friday, 28 May 2021 07:35 PM MYT
Investors have also reaped big gains betting against products designed to profit from volatile markets. More than a year later, “people are slowly coming back into it,” said Michael Purves, chief executive of Tallbacken Capital. Meanwhile, events with the potential to spark big market moves — such as last year’s presidential election and the January 5 Georgia Senate runoff, are now in the rearview mirror.
Investors next week will be keeping an eye on Friday’s non-farm payrolls for clues on the progress of the economic recovery and pace of inflation. “Volumes have dried up this week ahead of the Memorial Day weekend, and we are seeing major indices trade in tighter ranges and a notable trend of summer volatility selling,” he said, referring to both stock and options volume.One notable blowup came in February 2018, when a sharp fall in stocks cratered several short volatility exchange traded products, most notably the VelocityShares Daily Inverse VIX Short-Term exchange-traded note , which lost nearly US$2 billion.