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Nasdaq max drawdown10/4/2023 The Nasdaq-100 Upside Convexity Strategy has shown strong performance with the model portfolio having 4% annualized returns since January of 2007.The Upside Convexity strategy significantly reduced Max Drawdowns versus the long-only strategy during the COVID-induced correction.Since January 2018, the Upside Convexity strategy has high performance with strong periods of outperformance against both the long-only strategy and an at-the-money call buying strategy during sharp market rises.While performance of the Nasdaq-100 Upside Convexity Strategy has lagged the long-only Nasdaq-100 strategy since January 2007, it had a significantly lower Max Drawdown during the Financial Crisis.The Nasdaq-100 Upside Convexity Strategy was designed using Volos’ Strategy Engine – a no-code web application that allows investors to develop and analyze custom single and multi-leg options.Using a budgeted approach to buy calls on the Nasdaq-100 can often prove more efficient than a long only strategy in rising markets.Systematic Call Buying for Upside Convexity: With the Fed dot plot now showing continuous rate hikes in the coming years and indicating they could be more aggressive than they have previously indicated, we wonder whether the 40-year bond bull market is ending and could precipitate what investors have deemed “The Great Rotation” – an exodus of assets out of fixed income and into equities.There will ultimately be winners and losers as this dynamic plays out over time. The ramifications of pent-up demand following the economy reopening after multiple years of a stay-at-home lifestyle are difficult to quantify and should be considered as offsetting some of the effects of rising prices.An overlooked concept during inflationary periods is that stocks often benefit- due to operating leverage when companies see margin expansion and increased profits from scalable business models and price increases.and Silicon Motion Technology wasn't one of them! That's right - they think these 10 stocks are even better buys.Investors could be overlooking the positive effects of inflation and rising rates: They just revealed what they believe are the ten best stocks for investors to buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* When our analyst team has a stock tip, it can pay to listen. But with the vast majority of this merger arbitrage opportunity now realized, I also wouldn't blame investors for selling now and putting that money to work in any number of other promising tech stocks.ġ0 stocks we like better than Silicon Motion Technology ![]() With Silicon Motion shares trading slightly above the cash acquisition premium now, Silicon Motion investors can still wait to collect their MaxLinear shares assuming the merger is completed as planned in the coming quarters. So with around 33.41 million shares of Silicon Motion outstanding and 80 million shares of MaxLinear as of this writing, MaxLinear's drop isn't indicative of the market's pessimism surrounding the deal, but rather a reflection of those new shares to be issued. Per the terms of the deal, MaxLinear will pay investors $93.54 in cash and 0.388 shares of MaxLinear for every Silicon Motion share they own.
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