Mid-week market update: I pointed out on the weekend (see A final update on the Trump Trade: Tail-risk assessment) that the term structure of the VIX had inverted, indicating high levels of market anxiety. The market was hedging for a catastrophic outcome that turned out to be nothing. Today's post-election rally is mainly attributable to a positioning unwind of an over-hedged position. "Bloomberg reported that "Wall Street Quants Set to Buy $50 Billion in Stocks as Volatility Falls".
What's next?
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