Key Takeaways
- War Could Mean More Market Turbulence
- Bond Cash Markets Closed Today
- Skew May Make Puts Expensive
Wars in the Middle East and Ukraine. A looming government shutdown. No Speaker of the House. Rising interest rates. This is one of the most geopolitically contentious periods I’ve seen in my trading career. Given these challenges, you might expect markets to look much worse than they do. The pace is something to keep in mind, the market usually takes its time in assessing certain risks and war is chief among those. The loss of innocent life is always tragic in these situations and that is the saddest part of these situations. Outside our very human emotions of anger and sorrow, the market takes a less emotional view. Unfortunately, these conflicts often come to an immediate stop or play out over a much longer period than people would originally think, this helps explain why the market has a more muted reaction than many may think. In premarket activity, the S&P futures are down just over 0.5% and Nasdaq futures are off by 0.8%.
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