Elite Wealth Management Blog
Alpha can be found in any corner of the globe, but before capital can be put to work, the fundamentals must be taken into consideration. Nowadays, one of the biggest drivers of returns is central banks. Accordingly, below is what you need to know for each major central bank, from where they stand to what expectations are being priced in, as well as the effectiveness of their current policy as measured by economic activity and inflation.read more
$100 invested in the CBOE S&P 500 Put-Write Index strategy in 1986 would be worth just about $1,700 today, clocking in at 10.1% annual returns.
A CBOE study recently concluded that despite the perceived risk of shorting puts, the strategy has performed incredibly well, even during the 2008 crash. Specifically, the study tested selling at the money puts on the SPX one month out and investing the secured cash in three month treasury bills.read more
Startups and public companies are in a race to figure out what will be a mixed reality…hoping to grab a slice of the $80+ billion virtual and augmented reality market by 2025…At least according to Goldman Sachs estimates.
Expectations naturally differ across the street, but the current level of capital in the sector is undeniable…read more
Alphabet’s moonshot factory, X, is trying to solve huge problems with breakthrough technologies and seemingly radical solutions to make the world a better place. While investors can obviously participate by owning Alphabet, the projects they are working on could be forward looking investment ideas as well.read more
Japan’s most recent affair with quantitative easing began in October of 2010 following poor economic and inflation growth after the great recession. Since then, Japan’s headline stock index, the Nikkei 225, has rallied nearly 70%; however, Japan’s quantitative easing program has far outpaced stock market growth.read more
The Bay Area knows its way around an expansion cycle. Few have experienced equity volatility like Silicon Valley, for both public and private entities. Low interest rates and a general appetite for risk has seemingly pushed tech multiples to the moon, but this underlying trend has bolstered The Valley more than many give it credit.read more
Commodities are often associated with purely speculative investments. This is simply not the case. Just like a stock, commodities have fundamental drivers too.
The price of oil has become increasingly more important since it began to tumble back in June of 2014. When the market started to trend with oil, interest in black gold surged even more. With renewed interest in oil, it’s essential to look at what the professionals consider when analyzing a trade.read more
European bank stocks have been getting slammed. Concealed by Chinese Yuan and Federal Reserve headlines, European financials have secretly been having a terrible year. Poster child European banks like Deutsche Bank and Credit Suisse are down nearly 30% and 40% respectively in the last six months—read more
“Whatever it takes” is an aggressive mandate for monetary policy—nothing short of historic. Momentous action is called for, however, in the case of Japan. The Bank of Japan (BOJ) is attempting to rescue the country from its decade long economic slump. Accordingly, Japanese central bankers have passed some of the most aggressive policy measures ever seen. Despite these actions, Japan is still plagued with subpar inflation growth and is far from its consumer price index goal.read more
Alpha can be elusive. Many investors spend their careers chasing fads and attempting ill-fated trades to hopefully boost their performance. Finding these opportunities, historically, required a research team and other scarce trading resources. Now more than ever, these capabilities are freely available to investors through technology. Interest in extracting alpha via options has brought forth the rapid adoption of options as a risk management and return enhancement tool.read more
Janet Yellen is in a tight spot. Domestic economic indicators seem to be strong compared to the rest of the world, but a backdrop of diverging international economies seem to have gotten the better half of other central banks.
Despite these concerns, the Fed stuck to its plan of raising interest rates in December to 0.25%, kicking off a new interest rate regime. Going forward, investors will need to look at the 2016 calendar for clues as to when the Fed will raise again.read more
We’re finally coming to a close for 2015, and the final quarter will be the conclusion to a year that’s been defined by uncertainty and uneven performances. Mixed economic data haven’t given investors a clear vision of what the future will look like, while other regions around the world have shared in a global economic slowdown that finally culminated in a collapse in the Chinese stock market last quarter.read more
It’s been roughly one year since the Fed ended its historic quantitative easing program and gave control of the economy back over to the free market. With those memories of a Fed driven market still fresh in investors’ minds, it seems that the Fed is once again in control of this market’s destiny. Markets are quickly retreating to a “wait and see” trading mentality when it comes to Yellen, which is contributing to a rise in uncertainty and volatility in the broader averages…read more
Wall Street has been behaving erratically over the past few weeks ever since the Chinese contagion finally reached U.S. shores. As of the close on September 8, 2015, the S&P 500 has shed nearly 110 points, a 5.29% loss, in the past month even after recovering from a drop of nearly 230 points earlier. Meanwhile volatility has soared more than 85% over the same time frame and is currently holding steady around 25…read more
Investors have been on a bit of a rollercoaster ride the past several days as the markets dipped down and back up by hundreds of points. Volatility rocketed up with the VIX ending Thursday the 20th at 19.14 and reaching a staggering high of 53.29 intraday on Monday the 24th – an increase of more than 178% in less than two trading days…read more
The broader indices continue to tread water at or near all-time highs despite unconvincing mixed economic data and crises in both Europe and China. While the Greek debt issue seems to have come back under control, the collapse in the Chinese stock market has yet to bleed over into domestic markets. Yet the threat of a possible loss has not seemed to faze stocks…read more
Financial markets around the world have been roiling over the past few weeks. The Greek debt crisis, Chinese stock market crash, and plunging oil prices have triggered a wave of selling and have reintroduced volatility back into the markets…read more
Beyond the standard business cycle of expansionary and recessionary phases where certain stock sectors outperform or underperform more than others, a larger cycle exists. It’s a much longer cycle that can take time to develop but once it gains enough momentum, could last for decades…read more
As domestic markets become filled with turmoil, investors may start to feel disillusioned about equities. While the first two months of 2015 started off well enough, the broader indexes tapered off and began to tread water until late June. Now volatility has leaped up and threatening to cross the 20 threshold amidst mixed economic data, the Greek debt crisis, and a Chinese stock market selloff that has dragged the S&P 500 down 3.43% since June 23rd…read more
There’s something interesting happening in the financial markets right now. And the way the markets reacted to the Greek debt crisis on Monday could be a precursor to a far bigger problem. There’s been irrational behavior displayed by traders and investors for the last several months – it’s not quite the kind of “irrational exuberance” once coined by Alan Greenspan, but there are some disturbing correlations that are being displayed in the markets starting with a peculiar lack of volatility…read more
Investors haven’t had a whole lot to cheer about in recent months. The constant threat of a Greek default, wild swings in the price of oil, and uncertainty about the upcoming Fed Funds rate hike has infiltrated investor sentiment. The markets have basically traded sideways since late February waiting for either good news or bad news to finally tip the scales to send them higher or lower…read more