TMS media

MOVE!

MOVE The Merrill Lynch MOVE Index, according to Bloomberg, is a “yield curve weighted index of the normalized implied volatility on 1-month Treasury options.” In basic terms, the MOVE Index shows what the option market is pricing in (or implying)…

The WeeklySnapshot 11/07

Risk-Off Day In The Markets As of 2:34 EST, the S&P 500 is down -2.11%, and Average Volume at Time (AVAT) using a 30-day period was higher by +31.77%. The 10yr Treasury dropped -12.7bps to 1.623%. AVAT is the percentage…

QE3 – Not with MY Money

Let’s not get me started on the merits (or lack thereof) of Monetary Easing.

We need real fiscal solutions to help us get back on our feet, not an artificial increase in demand for Treasuries. If QE3/Twist3 take place – how will this benefit average Americans when borrowing costs have remained at historic lows? To get the world’s largest economy growing again we have to fix real structural problems, like the fiscal-cliff we are staring down at the end of this year. We have to create jobs and the housing market has to rebound before we can get consumers to spend the amount of money necessary for a recovery.

What could can more easing possibly accomplish?!

Thursday is the FOMC meeting. If we get more easing (and enough of it) markets will move artificially higher. If we don’t, the bottom will fall out and we’ll retrace the majority of our last bull move up to a four-year high on the S&P 500. I wish I knew what Bernanke’s plan was…

In addition to the FOMC meeting, we have German court rulings out tomorrow that could change the course of the euro-crisis. If they decide Germany will not support the ESM (Europe’s permenant bailout fund), we are in for some serious volatility.

These are some trying times for asset managers. Where do you find yield in this interest rate environment without taking too much risk? Seriously, I’m asking – where is it?!