INVESTORS CHANGE BEHAVIOR TO HEDGING INSTEAD OF SELLING, 80% OF EARNINGS BETTER THAN EXPECTED
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Hedging Instead Of Selling
Please click here for a chart of S&P 500 VIX Short-Term Futures ETN (VXX) and S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- In September and October, institutional investors engaged in abnormal behavior.
- Normally, there is selling during the seasonally weak period of September and October.
- This year, due to the Fed spiking the punch with a 50 bps cut when the data did not support it, investors have taken to hedging instead of selling during the traditionally weak seasonal period.
October 21, 2024