The Random Walk Theory most clearly laid out by Burton Malkiel, an economics professor at Princeton University, posits that the price of securities moves randomly and that, therefore, any attempt to predict future price movement, either through fundamental or technical analysis, is futile. SGG investment approach has been much focus...
The rise of 0DTE (zero day to maturity options) is a recent phenomenon. Option volume has really taken off during Q4 2022 and has deeply impacted market behavior and structure. For the ones not really fully acquainted with the matter, May 2022 is the month where it all started....
SGG believes that the market structure is an important behavior factor. Technology and computing power are definitively important drivers. The Investment management industry has been highly commoditized and the rise of passive investment is a result. When I say "Commoditized" it means that financial products suppliers profit margins have shrunk...
The aftermath of the COVID crisis and the ongoing Ukraine conflict has been a surge in inflation to level not seen in a long time. From globalization and fear of deflation to friend-shoring and fear of inflation. Looking back at the last 40 years, summer 1982 marked the start of...
Just a few ones.... I have focused quite a bit on the US equity market in previous posts, since it has been the lone World leader since 2008. It remains the leader, in relative terms. The US equity mkt has been the excess liquidity recipient. However, the derivatives mkt is...
I have highlighted in previous posts that since 2008, the sole game in town has been the US stock market and in particular the Nasdaq 100 index. We can observe many distortions and one of them is that cash market actions has become somehow the derivative of the derivatives...
The World Federation of Exchanges publishes interesting articles and information on a monthly basis. Unfortunately, the august 2020 figures are not yet available. I find interesting the last chart about the derivatives volumes. For the last two years, total volume has more than doubled. Is this: the sign of...
