While JPMorgan’s Marko Kolanovic is positive on US stocks in 2017, market risks will increase and volatility is being underpriced by as much as three points. Chief among those risks will be the strong US dollar, he writes in an 82-page “2017 Equity Derivatives Outlook.” Higher US dollar likely to negatively impact US large cap stocks, emerging markets US Treasury Yields and the US dollar are correlated: they both travel higher and lower in price together. With multiple interest rate hikes on the table in 2017 and a host of unknown fiscal and trade policies to come, uncertainty could be…
Kolanovic Sees Higher Risk Potential In 2017, Volatility Not Properly Priced
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.