If nothing else, the 2020 coronavirus (COVID-19) pandemic reminded us of the importance of risk management. From late February through the end of April, unprecedented levels of volatility swept the world’s equity, commodity, and currency markets. Traders familiar with the principle of diversification and how to hedge with options protected their wealth and may have… Read more.
When tens of millions of people lost their jobs due to the 2020 novel coronavirus (COVID-19) pandemic, stock market volatility echoed the distress. Throughout March and April 2020, equities devolved into chaos as the markets attempted to price-in an unprecedented economic event. To stay ahead of the curve, traders dedicated immense resources to the study… Read more.
On Inauguration Day 2017, the United States entered into a new era of economic policy toward China. Led by the commercially hawkish, nationalistic tone of the Trump administration, U.S.-China trade underwent a sweeping overhaul. Everything from agricultural subsidies to intellectual property theft came under intense scrutiny. The result was an extended period of saber-rattling, tough… Read more.
During challenging economic times, the U.S. Federal Reserve (FED) is tasked with managing the chaos. The organization’s primary objective is clearly defined in its official mission statement:
The 2020 outbreak of the novel coronavirus (COVID-19) created a financial environment driven by angst and trepidation. COVID-19 panic swept the globe, placing the world’s capital structure under extreme pressure. The result was consistently high volatilities in the commodity, equity, currency, and debt markets.
Traditional financial theory suggests that a recession is two consecutive quarters of negative growth in a nation’s gross domestic product (GDP). The underpinnings of these types of economic downturns vary. Typically, a recession is attributed to commodity pricing instability, market crashes, inflation, or extraordinary events.
In the modern era, the global credit crunch of 2008 is the standard for financial crises. A product of toxic asset securitization and subprime mortgage lending, 2008 brought to light severe shortcomings in the world’s monetary system. Twelve years later, the coronavirus (COVID-19) pandemic has once again forced the hand of the U.S. Federal Reserve… Read more.
As 2019 drew to a close, futures market participants began looking ahead to the busy calendar of 2020. A conclusion to impeachment proceedings against Donald J. Trump, a resolution to the U.S./China trade war, and a hotly contested presidential primary season highlighted early 2020’s docket. These three issues were perceived to be game changers, but… Read more.
The new year brought a fundamental market driver seldom seen in the world of finance: a global viral outbreak. The onset of the novel coronavirus, officially labeled COVID-19 by the World Health Organization (WHO), sent a shockwave through the equity, commodity, currency, and debt markets. Although the immediate reaction to the novel coronavirus was muted,… Read more.