Trump's pledge of big tariffs on Canada, Mexico and China could trigger trade wars
NEW YORK – Demand for options protection against an equity market crash is rising, even as a post-election rally takes US stocks to record highs.
One such risk came to the fore late on Monday, when Trump pledged big tariffs on Canada, Mexico and China – detailing how he will implement campaign promises that could trigger trade wars. "While investors broadly remain long equities, the tails are fatter," she said. "This is partly from a rise in geopolitical risk premium and certainly potential policy risk as Trump returns to the presidency and potentially enacts tariffs and other measures."
VIX call options, which offer protection against a market sell-off, also shows some of this demand to protect against "tail risks." VIX three-month call skew - a barometer of the strength of demand for these contracts - is hovering near the highest level in over five years, according to an analysis by Susquehanna Financial Group.
پاکستان تازہ ترین خبریں, پاکستان عنوانات
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