Category Volatility

Elections and equities

As the U.S. presidential elections approach, the equity market’s volatility tends to increase and remain stable. Historically, volatility tends to subside immediately after the election, regardless of the winning candidate. On average, markets have seen about 5% gains in the…

Tempestuous price and serene fundamentals

Fundamentals tend to be serene, while prices are tempestuous. Market sentiment, news reconciling large information asymmetry, events resetting expectations, liquidity, momentum, and technical factors are all responsible for these dynamics. Understanding the stimulant of a large price move is an…