Hedge risk? As stock market volatility is trading at odd, if not absurd lows, Bank of America Merrill Lynch’s Global Asset Allocation team doesn’t think much of the VIX as a leading indicator and advises to hedge inexpensively. In fact, they think the opposite of low volatility is about to disrupt the dead calm. Hedge risk – Significant risk exists amid low risk signals from volatility measures Low trading volumes, tight ranges and “limited directional conviction” has combined to push hedging costs to yearly and in some cases multi-decade lows. But this calm is a façade, BAML analysts Jason Galazidis,…
BAML: Watch For "Fragility Event," Hedge Properly
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.