A thought many people have after things don’t go their way: I should have hedged! The key to hedging, unfortunately, is doing so when things ARE going your way. To use a sports analogy, bettors on the side of the Atlanta Falcons in the 2017 Super Bowl preferably would have hedged when they were up 28-3 and their opponent’s, the New England Patriots, odds to win were 11-1.
For active traders and investors, systematic risk is a market driver that should never be ignored. It can come on as a surprise and wreak havoc on even the most well-diversified portfolios. Let’s take a look at how astute market participants address and hedge against this type of risk.
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.
Although metal, energy, and agricultural commodity contracts are popular targets for speculators, they’re also valuable to hedgers. Whether you’re concerned about inclement weather cycles or rising inflation, commodity futures can offer insurance against the unknown.
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.
We go over the economic impact of coronavirus, the fed interest rate cut, and why the markets trader higher when Biden started winning on Super Tuesday.
We go over the recent moves in the macro markets and the latest from the 2002 Ag Forum
We go over the latest WASDE results plus our thoughts on Rice, Corn, Crude, Cotton, and Soybeans vs KC Wheat
The USDA’ s February WASDE will included expected demand from Phase One and the USMCA trade deals. Both should be friendly
According to the International Energy Agency (IEA), global demand for crude oil is expected to increase by 1 million barrels per day until the year 2025. If the IEA’s projections turn out to be accurate, then the supply side of the global energy complex will be placed under immense pressure. Given such a scenario, implementing… Read more.