Spreadex Market Update

Plenty to talk about



While there’s plenty to talk about, there’s not a great deal going on. This is probably a fair description of the current state of affairs in the market, with prices relatively stable and volatility still cheap.

Equities and risk assets have held up well in spite of sentiment worsening, as investors eye headline risks from all corners of the global economy. According to headlines and news flows, the market seems well-positioned and prepared to sell risk against a challenging macro backdrop, particularly as earnings have the ability to disappoint, too. But alternatives to the equity market have, to at least some extent, been already exhausted. Negative real yields on 10yr bonds describe the picture well.

Thus, so long as money remains cheap, and the world’s most powerful central banks can support prices, bulls still have reason to target upside so long as fundamentals can accommodate. For the bears, however, gold remains a play against the collapse of fiat currencies. And with volatility cheap and stock indices breaking new highs, buying puts to insure against collapse for even the most ardent optimists is becoming a strategy hard to ignore.

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.