INSIGHTS

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Our industry is one of constant change. Markets are a fascinating and complex space, reflecting evolutions in economics, policy, international relations, consumption, and so much more. In every corner of the office, our people have dedicated their professional lives to understanding how – and more importantly, why – markets are moving and how this impacts our work. This blog is a forum for our people to share what they are seeing in the marketplace, and how we are innovating in response. Please read our latest posts on relevant topics and ideas.  Scroll Down

FQ Viewpoints

HOW HIGH CAN WE GO?

Folks have been concerned about rising yields (in particular, on the long end of the curve) for some time. Some of those fears have been realized, as…
FQ Viewpoints

VACCINE DISTRIBUTION

”Are vaccination rates a good proxy for future economic growth?”, is a question we are being asked frequently by our clients right now. The quick and…
FQ Studies

BACK TO NORMAL? Q2 OPTIONS OUTLOOK

The options market can shed light on how some market participants are viewing future market risks. At the start of 2021, the options data suggested a…
FQ Viewpoints

INFLATION: NOTHING TO FEAR BUT FEAR ITSELF

Inflation fear seems to be on everyone’s mind these days. Certainly, bond investors appear concerned, while other market pundits are expressing mixed…
FQ Reflections

REFLECTIONS AFTER A YEAR OF WORKING FROM HOME

Almost one year ago, in early March 2020, First Quadrant began to strongly encourage employees to shift toward remote work. Though California had not…
FQ Studies

CONGRESSIONAL GRIDLOCK AND THE MARKET

Last month, the US inaugurated a new Presidential administration and a new Congress. Though Democrats now control both the Executive and Legislative…
FQ Viewpoints

A STOCK MARKET BUBBLE CHECKLIST: ARE WE THERE YET?

Market pundits have been talking bubbles lately. The broad market appears to be overvalued by many measures. The recent volatility involving GameStop…
FQ Studies

OPTIONS OUTLOOK Q1: STEADY AS SHE GOES

The options structure can be a useful tool for identifying market participants’ outlook. In 2020, global equities followed a sharp V-shaped pattern…
FQ Viewpoints

PMI IS AT A TWO-YEAR HIGH! BUT DON'T BE FOOLED

The global economy has recently showed some signs of stabilization, particularly in the manufacturing sector. Unfortunately, there seems to be a…
FQ Studies

OPTIONS AND THE PRESIDENTIAL ELECTION

As everyone is well aware, the US will hold a Presidential election this November, which could have a pronounced impact on markets. To develop a…
FQ Viewpoints

THE FED FINE-TUNES ITS MANDATE

On August 27th, Fed Chairman, Jerome Powell, gave a speech specifying a change in the Fed’s monetary policy framework. After a two-year policy review…
FQ Studies

HISTORY MAY NOT REPEAT, BUT IT OFTEN RHYMES

Several attributes of the stock market today are reminiscent of the period near the end of the tech bubble twenty years ago. Growth has shot the…
FQ Viewpoints

IS THIS THE MOTHER OF ALL DEAD CAT BOUNCES?

Stock markets advanced in volatile trading in the second quarter, regaining much of the losses from the Q1 sell-off. Sentiment shifted frequently…
FQ Viewpoints

CURRENCY MARKETS: THE CANARY IN THE COAL MINE

The Chinese government has moved to introduce measures to assert greater control over Hong Kong, virtually ending the "one country, two systems"…
FQ Viewpoints

FRACTAL MARKET HYPOTHESIS

The world – and markets – look very different than they did at the start of 2020. In my 1994 book, I outlined the Fractal Market Hypothesis (FMH),…
FQ Viewpoints

RISK MITIGATION IS RISK MANAGEMENT

“Risk mitigation is risk management, and there is no point in time when we should stop managing our risks.” - Max Darnell Max recently participated…
FQ Studies

WHAT DOES THE OPTIONS MARKET TELL US ABOUT THE SPX RECENTLY?

It is hard to believe we are just over a quarter into 2020. As the COVID-19 pandemic escalated, markets experienced their steepest selloff in history…