The hottest Volatility Substack posts right now

The author has a new favorite Japanese stock index position betting on Nikkei outperforming S&P 500 and getting long volatility.
The focus of the article is not on fundamental reasons for the position, but on a unique trading edge.
The content of the post is available only to paid subscribers.

It's crucial to understand the credit rating scale of bonds to identify distress in the financial system, as issues in the bond market can quickly impact other financial sectors.
Monitoring indicators like bond spreads, such as the ICE BofA US Corporate Index Option-Adjusted Spread, can help determine the financial system's strength. Lower spreads usually indicate a healthier market.
Using indices like the St. Louis Fed Financial Stress Index offers a comprehensive view of financial market stress, incorporating various metrics like interest rates, yield spreads, and stock and bond volatility.

Stock market volatility is not solely caused by 'Robinhood investors'; experts' claims are not well-supported by research and basic math
While individual firms have seen increased volatility, overall market volatility has remained relatively consistent, highlighting the importance of looking beyond surface-level narratives
Opportunity cost plays a significant role in firm-level volatility, with investors impacting individual stocks based on trends, emotions, and investment decisions, even if market-wide volatility does not reflect this

When ahead, play conservatively; when behind, play with more volatility
Understanding and utilizing volatility is important for wealth-building strategies
Rebalancing is a key strategy to manage exposure to volatility in an investment portfolio

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The digital asset market has evolved significantly since Bitcoin's inception, with emerging sectors like blockchain infrastructure, on-chain derivatives, DeFi, and NFTs.
Sector correlations, like BTC and ETH, can provide insights into the relationships among different sectors within the digital asset market.
Market volatility varies across sectors, with assets in the Decentralized Finance sector experiencing the highest average volatility in 2023.