Vimal Gor

Head of Bond, Income & Defensive Strategies

Income & Fixed Interest Newsletter – January 2018

2018 has started with a bang. First we saw the melt-up and then we saw the crash down. The S&P is virtually unchanged from year-end levels, but the volatility has been massive. To put it in perspective, this was the strongest January performance the S&P has seen since 1989, which was then followed by a brutal selloff which saw cryptocurrencies slammed and the VIX jump from 10 to 50.

In this Newsletter I have a look at the leverage in the system and why volatility is suddenly spiking now. 

There is also an addendum where I remember the similarities of these markets to 1994.


View the newsletter here.



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