Here is how FX hedge funds are trying to make a buck in this low volatility time (gold!)
An interesting item from Bloomberg on the low volatility in forex and what some funds are doing to make some money
- Price fluctuations across currencies … lowest level since September 2014
- Only a crisis is likely to revive forex volatility
One fund 'is investing in gold as an alternative to trading the dollar.'
- "If managers have the flexibility to trade gold, it's really the purest bet on the dollar -- or against it -- because it's not influenced by monetary policy of countries"
- "As volatility falls, it's like a risk play for or against the dollar."
Maybe we just gotta wait it out?
- JPMorgan in a March 15 note listed potential catalysts for a return to higher volatility, including failed U.S.-China trade talks triggering a tariff increase, and a destabilizing spike of Brent crude above $80 a barrel, but said none of them seem particularly immediate and most are of low to moderate probability
My only wish is that article had have profiled some funds selling volatility. Just so we could see Taleb tearing strips off them when it all (inevitably) blows up again.