The controversial financial product known as XIV is shouldering a lot of the blame for the recent flash crash that saw the Dow slump more than 6% in a span of six minutes. Dave Mazza, Head of ETF Investment Strategy at OppenheimerFunds, was with us to break down the theory that volatility-based products fueled the market meltdown.
The XIV is meant to produce the opposite returns of the volatility index, which spiked 118% Monday. Mazza explained that 2017 was a great year for stocks with record-low volatility. Due to this low volatility, many investors were feasting on these financial products, looking to benefit from volatility going lower. When the exact opposite happened, those investors dealt with the consequences.
"A lot of people like to point the finger at computerized trading for sharp movements in stocks," said Mazza. He said it's only one piece of the story. Mazza highlighted that fundamentals are important to watch and there are many variables that influence stock movement.
While tech employees worry about artificial intelligence taking over their jobs, Microsoft says Iran, North Korea, and more U.S. adversaries are beginning to use AI in cyber spying.
The self-proclaimed "only Post who worked at Kellogg" was a military veteran who fought in World War II before inventing everyone’s favorite fruit-filled breakfast ravioli.
Kevin Gordon, Senior Investment Research Manager at Charles Schwab, shares his thoughts on how investors can take advantage of the current bull market while keeping in mind the impacts of Fed policy and inflation.
Lab-created diamonds come with sparkling claims: that they are ethically made by machines running on renewable energy. But many don't live up to these claims or don't respond to questions about their electricity sources, and lab diamonds require a lot of electricity.
Geoff Freeman, president and CEO of the U.S. Travel association, explains why other nations are outcompeting the U.S., and the innovations that would put American back on top.
Tony Drake, founder of Drake & Associates, breaks down the latest CPI report, why ‘inflation is still trending down,’ and why the Fed doesn’t want to cut rates too soon.
