ProfitScore Update – September 2024
To the clients and friends of ProfitScore: At ProfitScore, our trading approach is guided by market Regimes. While various factors influence our specific trading decisions, understanding the market’s current state or regime is a key component in how we position our portfolio. Many of you…
ProfitScore Update – February 2024
To the clients and friends of ProfitScore: Exploring Volatility Asymmetry Volatility is a perennial topic of discussion within financial markets; its asymmetric nature is often overlooked, eluding casual observation. Market reactions to volatility demonstrate an inherent asymmetry: sharp increases in volatility frequently lead to turbulent…
The Currently Odd Volatility of Long-term US Treasuries
The US sovereign bond market is traditionally viewed as a safe-haven by investors. When US equity markets are under stress, investors generally purchase US Treasury bonds, pushing yields lower and bonds higher. Traders seeking convexity prefer buying the long-end of the yield curve, which causes the…
Why The Unwind Of The Carry Trade Is Increasing Volatility
Central bank interest rates are of fundamental importance to exchange rates and foreign exchange flows as they determine the direction and profitability of carry trades. When the interest rate differential between two central banks is positive, it is generally possible to borrow a currency at…