An interesting item from Bloomberg on the low volatility in forex and what some funds are doing to make some money
- Price fluctuations across currencies … lowest level since September 2014
- Only a crisis is likely to revive forex volatility
One fund 'is investing in gold as an alternative to trading the dollar.'
- "If managers have the flexibility to trade gold, it's really the purest bet on the dollar -- or against it -- because it's not influenced by monetary policy of countries"
- "As volatility falls, it's like a risk play for or against the dollar."
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Maybe we just gotta wait it out?
- JPMorgan in a March 15 note listed potential catalysts for a return to higher volatility, including failed U.S.-China trade talks triggering a tariff increase, and a destabilizing spike of Brent crude above $80 a barrel, but said none of them seem particularly immediate and most are of low to moderate probability
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My only wish is that article had have profiled some funds selling volatility. Just so we could see Taleb tearing strips off them when it all (inevitably) blows up again.
:-D
