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VIX Index

High of 37.32 on 05 Feb 2018

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Vix 5YR

Vix 5YR

Macroeconomic Market Report

Volatility Drivers

Mid-term Elections

  • Trade, taxes, and uncertainty of control of both houses of legislature increase likelihood of volatility leading up to elections

    • Historical information points to post-election market gains

Increasing Bond Yields

  • Increasing bond yields

    • Indicates surge in volatility of the broader stock market

    • Raises analyst worries of increasingly higher interest rates which could slow down economy

    • 10-year Treasury note at 3.158 as of the morning of 10/15/18

Rising Interest Rates

  • Fed’s attempt to stave off inflation

  • Continued sign of a strong economy

  • Mortgage rates have steadily climbed

Earnings Season Right Now

Current Uncertainty is Recipe for Continued Volatility for Foreseeable Future

  • Presents buying opportunities for us


Positive foundation / backdrop

Strong Job Market

  • Historically low unemployment

  • People investing and buying

  • Favorable access to credit

Earnings Growth

  • Strong US dollar v. World currencies

  • ~20% growth in U.S. companies in Q1 and Q2 2018

Low Corporate Tax Structure

  • More globally competitive

Rising US oil production

  • Larger safety net for the country if politics interrupt oil imports from countries like Saudi Arabia

  • Increased revenues for domestic energy companies