In Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest
by Andrew W. Lo and Stephen R. Foerster · 16 Aug 2021 · 542pp · 145,022 words
Fear Index, as a gauge of investor fear: the more uncertain investors are about future stock market values, the higher the VIX. But to describe the VIX narrowly as the Fear Index does it a disservice. The VIX provides the markets with the socially useful function of an insurance mechanism. Through the VIX, not
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, 90–93; on students at Chicago, 143; three-factor model of, 102–5 Fannie Mae, 249 fat-tail events, 89–90 Faulstich, Ginny, 231 Fear Index. See Volatility Index (VIX) Federal Reserve, Greenspan as chairman of, 236–39 fees: Ellis on, 274; Sharpe on, 79–80 fiat currency: Chinese bronze coins as, 6; first
Principles of Corporate Finance
by Richard A. Brealey, Stewart C. Myers and Franklin Allen · 15 Feb 2014
value is the same as that of a European call, and the Black–Scholes model applies to both options. FINANCE IN PRACTICE ● ● ● ● ● The Fear Index* The Market Volatility Index or VIX measures the volatility that is implied by near-term Standard & Poor’s 500 Index options and is therefore an estimate of expected future
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rights. Fallen angel Junk bond that was formerly investment grade. FASB Financial Accounting Standards Board. FCIA Foreign Credit Insurance Association. FDIC Federal Deposit Insurance Corporation. Fear index VIX. Federal funds Non-interest-bearing deposits by banks at the Federal Reserve. Excess reserves are lent by banks to each other. Fedwire A wire transfer
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customer (cf. horizontal merger, conglomerate merger). Vertical spread Simultaneous purchase and sale of two options that differ only in their exercise price (cf. horizontal spread). VIX (Fear index) A measure of the implied volatility of stocks in the S&P 500 Index. VRDB Variable rate demand bond. W WACC Weighted-average cost of
Trillion Dollar Triage: How Jay Powell and the Fed Battled a President and a Pandemic---And Prevented Economic Disaster
by Nick Timiraos · 1 Mar 2022 · 357pp · 107,984 words
is totally disconnected from reality, they said. Wake up! One closely watched indicator of volatility, the Chicago Board Options Exchange’s volatility index, or VIX—also known as the “fear index” because of how it tracks investor anxiety—surged to 27.85, a level last seen during the market tantrum at the end
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investors were rapidly bracing for a global event that would be far more menacing: Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Tuesday, February 25 10 0 27,081 (↓879) 27.85 (↑ 2.82) At a press conference the next night, Trump announced that Vice President Mike
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couple of days is going to be down to close to zero,” Trump said. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Wednesday, February 26 15 2 26,957 (↓124) 27.56 (↑.29) “This is why we’re here” Shortly after she returned from Amsterdam that week
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, and for the first time discussed whether they needed to take some stronger action. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, February 27 15 2 25,766 (↓1,191) 39.16 (↑11.6) “Act as appropriate” On the morning of Friday, February 28, after his
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edge of the government in terms of awareness about what was coming,” he said. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Friday, February 28 15 4 25,409 (↓357) 40.11 (↑.95) If aliens invaded After Pence took over the coronavirus task force, Mnuchin and Kudlow
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Fed. “Jerome Powell led Federal Reserve has called it wrong from day one. Sad!” Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Monday, March 2 72 11 26,703 (↑1,294) 33.42 (↓ 6.69) On Tuesday, Mnuchin’s G7 call began at 7 a.m. and
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’re going to have to do a hell of a lot more,” he said. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Tuesday, March 3 114 14 25,917 (↓786) 36.82 (↑3.4) Preparing for the worst Just nine days after Powell returned from Riyadh, the
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spend a lot more time thinking about how fiscal policy could do its job.” Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Friday, March 6 445 26 25,864 (↓257) 41.94 (↑ 2.32) By the weekend, at least six US governors had declared states of emergency
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Secretary Steven Mnuchin for not doing more to pressure Powell to cut rates.1 Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Monday, March 9 1,061 35 23,851 (↓2,013) 54.46 (↑12.52) Getting fiscal The following day, Trump, Kudlow, and Mnuchin joined Senate
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ability to manage economic problems meant the ball was still in Powell’s court. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Tuesday, March 10 1,497 37 25,018 (↑ 1,167) 47.30 (↓ 7.16) The panic begins The whole point of global financial markets is
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and again after the terrorist attacks of September 11, 2001. America was locking down. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Wednesday, March 11 1,915 43 23,553 (↓1,465) 53.90 (↑6.6) Chapter Nine TURNING THE KNOBS TO 11 Every week, Treasury Secretary
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their jobs if businesses were forced to close and people hunkered down at home. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, March 12 2,592 52 21,200 (↓2,353) 75.47 (↑21.57) Have you heard of TALF? Powell fired off an email to
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Pelosi. The House bill sailed through on a 363-40 vote shortly after midnight. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Friday, March 13 3,450 57 23,185 (↑ 1,985) 57.83 (↓ 17.64) The right to remove Even though stock markets reversed most of
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emergency loans, the Fed stopped its weekly reporting of district-by-district borrowing amounts. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Monday, March 16 7,449 102 20,188 (↓ 2,997) 82.69 (↑ 24.86) Sending checks Nothing grabs the attention of leaders of both parties
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message. “Fed, do something, and fast.” This was going to be Bagehot—on steroids. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Tuesday, March 17 9,577 126 21,237 (↑ 1,049) 75.91 (↓ 6.78) Chapter Eleven MONEY ALMOST STOPS Wednesday, March 18, was a nightmare
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a dark runway, then make sure it does not skid off into the ocean. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Wednesday, March 18 12,934 152 19,898 (↓ 1,338) 76.45 (↑.54) Triage Powell emailed Clarida first thing the next morning, March 19, unspooling
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Korea, for example, there was a joke that IMF stood for I’M Fired. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, March 19 17,540 203 20,087 (↑ 188) 72 (↓ 4.45) “Lamps are going out” Around 11:30 a.m. on Friday, Clarida sent
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names, it would reset the broader market, forcing weaker firms to pay astronomic sums. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Fri, Mar 20 23,640 273 19,173 (↓ 913) 66.04 (↓ 5.96) “Fear is the most contagious disease” Berkshire Hathaway was among the best
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the Fed’s massive purchases were blessedly beginning to relieve more of the pressure. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Monday, March 23 50,998 582 18,591 (↓ 582) 61.59 (↓ 4.45) The art of the deal That night Mnuchin joined Schumer in his
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Great Depression—and the fourth-biggest ever. But the deal was not yet complete. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Tuesday, March 24 61,894 817 20,704 (↑ 2,113) 61.67 (↑.08) At 1:37 a.m. on Wednesday morning, Mnuchin and Schumer jointly
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would ever realize how close the economy had come to a much grimmer fate. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Wednesday, March 25 74,551 1,058 21,200 (↑ 496) 63.95 (↑ 2.28) Unlimited ammo Just after 7 a.m. on Thursday, March 26
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another job,” a laid-off Philadelphia construction worker told The Wall Street Journal.23 Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, March 26 92,143 1,371 22,552 (↑ 1,352) 61.00 (↓ 2.95) “Three weeks like we’ve never seen before” On Friday
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-grade bonds had begun to decline after hitting highs not seen since early 2009. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Friday, March 27 111,358 1,782 21,363 (↓ 915) 65.54 (↑ 4.54) The good news for the country was that Congress had moved
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trillion by April 8. It had grown almost $2 trillion in just six weeks. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Wednesday, April 1 223,169 5,337 20,943 (↓ 974) 57.06 (↑ 3.52) Crossing lines, creating cliffs “We’ve made good progress,” Boston Fed
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great fiscal power of the United States should be used to make people whole. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, April 9 466,736 18,027 23,719 (↑ 286) 41.67 (↓1.68) “A thank-you letter to the Fed” Markets were well on
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. Democratic congressmen asked for $5 billion in help to the ailing passenger-bus industry. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, April 30 1,073,244 59,646 24,345 (↓ 288) 34.15 (↑2.92) V, U, or K? Normally, recessions occur because of some
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great day for everybody. This is a great, great day in terms of equality.” Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Friday, June 5 1,895,109 105,128 27,111 (↑ 829) 24.52 (↓1.29) Back to the boardroom Four days later, on June 9
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it a lot over the course of ‘Fed Listens’” had made a strong impression. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, August 27 5,819,843 172,857 28,492 (↑ 160) 24.47 (↑1.20) The new strategy raised some unanswered questions. If the Phillips
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to provide support to the economy until it is clearly out of the woods.” Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Tuesday, October 6 7,433,886 202,846 27,773 (↓ 376) 29.48 (↑1.52) Election endgame Mnuchin had spent weeks trying to broker talks
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out of the woods or that it might soon pull back its other stimulus. Date 2020 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Thursday, November 19 11,726,284 244,180 29,483 (↑ 45) 23.11 (↓0.73) Democrats called on Powell to stiff Mnuchin’s request for
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promised, “for we have much to do in this winter of peril and possibility.” Date 2021 Covid-19 Cases Covid-19 Deaths Dow Jones Average VIX Fear Index Wednesday, January 20 24,251,909 396,387 31,188 (↑ 258) 21.58 (↓1.66) Chapter Seventeen THE INFLATION SURPRISE In 2018, a few weeks
The New Trading for a Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management
by Alexander Elder · 28 Sep 2014 · 464pp · 117,495 words
best leading indicator of the stock market and like to write down the latest weekly and daily figures every morning as a refresher. VIX—The volatility index, also called “the fear index.” There is a saying: “When VIX is high, it's safe to buy; when VIX is low, go slow.” A footnote
Chaos Kings: How Wall Street Traders Make Billions in the New Age of Crisis
by Scott Patterson · 5 Jun 2023 · 289pp · 95,046 words
meant extremely strong action by the government—shutting borders, imposing lockdowns, etc.—was necessary. The stock market, meanwhile, continued to float on calm waters. The VIX fear index neared its all-time low mid-February. Not everyone was complacent. A pair of new clients, increasingly nervous about the pandemic, decided to invest. One
How to Speak Money: What the Money People Say--And What It Really Means
by John Lanchester · 5 Oct 2014 · 261pp · 86,905 words
sense of insecurity and anxiety in the market. As a result it has been a very important number in recent, anxious years. The VIX is sometimes called the “fear index,” which is catchier than its full title, the Chicago Board Options Exchange Market Volatility Index. The VIX is based on options prices for
The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated
by Gautam Baid · 1 Jun 2020 · 1,239pp · 163,625 words
into a state of utter complacency and set us up for some nasty surprises. On February 5, 2018, volatility, measured by the CBOE VIX (also known as the “Fear Index” on Wall Street), suddenly exploded a record 118 percent in a single day to the highest levels since the Lehman Brothers crisis. This
EuroTragedy: A Drama in Nine Acts
by Ashoka Mody · 7 May 2018
time, financial markets would better serve the common good. As if to validate the great moderation narrative, during the course of 2004, the global “fear” index—the VIX, a measure of future volatility of the US stock market—fell steadily toward 15, well below its historical average of 20. Crucial to the benign