Wall Street is bracing for a triple witching, which could cause market volatility. Triple witching is the expiration of different types of contracts, such as...
Wall Street is bracing for a triple witching , which could cause market volatility . Triple witching is the expiration of different types of contracts, such as stock options , stock index futures, and stock index options contracts. This occurs on a quarterly basis on the third Friday of the month. Shares of tech giant Nvidia has reported catastrophe losses of $25 billion so far in 2024 due to extreme weather events .
Now, this happens on the third Friday of every month where you just get the stock options expiry and then we get the triple on a quarterly basis on the third Friday of the month.And according to various estimates, we could get anywhere from 4.8 to $5.5 trillion worth of these types of contracts that are expiring today.
However, if by some chance, the stock rose to $140 today, you sell this uh contract, potentially a profit or you would take delivery of those. So that's something to keep in mind, you might hear a lot of discussion about which the effect it has here. Yes, I mean, it's been a very interesting month because even though stock markets are up this month, you've seen very different views in the other asset classes.
So it is a little bit of a sense that the market is pricing in a a harder landing probability that's higher than it was before. I mean, shelter that component continues to really kind of just push CP I in every reading that we've gotten to this point.The dollar has been very mixed this month, but there's a couple of things that are holding the dollar up.
You have to think if you're going to trade against the dollar, you got to pick another currency and other currencies have struggled.Um And they're also much earlier in their hiking cycle which puts them at a disadvantage over the dollar and carry terms.Ok.
So like you pointed out inflation is not down to two yet, which means there's still going to be a lot of movement in other asset classes and you're also going to see stock bond correlation continue to be positive, which suggests that you need to think about trying to find other asset classes and areas of diversification so that you're not too overexposed to stocks and bonds uh when they tend to be positively correlated.
And a key indicator, a key leading indicator is how many hours their employees are working and we're seeing that up about 4% year over year.But the small businesses are also looking at the cash reserves, the cash reserves are down about 8% when you look at the same period last year, but six up 16% uh over the uh pre COVID uh time frame.
But what I would highlight is that the number one need of a small business, the area they're focused on the most is helping me get and grow customers. I wonder how you're seeing small businesses navigate this labor market right now, the labor market, you know, we can reflect on where it was a couple of years ago and companies of our scale were having challenges recruiting and retaining employees.The market has uh very much normalized and we are seeing small businesses continue to have a better uh time.
Uh Let me start out by sharing that we've been focused on A I years before it became fashionable to talk about A I. So when we look at the experiences we're delivering through into resist, which is our gen a Igen that's uh helping drive the experiences for small businesses.We are taking vendor PDF S and turning those into bills that small businesses can then pay electronically.
I mean, of course, you know, here at Yahoo Finance, we track the stock performance into it, under performing some of the major averages this year.I I wonder as you kind of look at the business on a go forward basis after this major FTC ruling and investigation, finding TurboTax free is not free for most and into it, not renewing the free file program.
And the worst thing we could do is leave our dependence to leave our loved ones, both grieving as well as financially burdened. And you have to understand if you were to die without a will, unfortunately, your money is gonna all your assets are gonna go to probate and from there that could potentially be costly.
Now your family is able to actually replace your income and then you could actually reconfigure that thinking, ok, say I have 23 kids and they're young of age or not, of age.So you might actually wanna have more. That's according to the National Association of Realtors, the combination of high prices, high mortgage rates and low inventory have been weighing on potential home buyers for a while.
Uh With home prices uh annually hovering around 6% it only adds to um um the more, more than 40% nearly 50% home price growth we've experienced uh since the start of the pandemic, basically since early 2020.Um And that's really made a fundamentally unaffordable housing market for, for many potential home buyers.Limited in inventories mean the options that are available for you are, are few and far between.
So that's, that's a $40,000 increase in just three years and that's priced out many potential home buyers.
And there is really a couple of reasons the most and foremost is that there are a lot more inventory.In fact, Texas and Florida has some of the highest number of housing permits authorized than anywhere else in the nation.And the reason for that is really quite interesting and it is because the rising, there is a rising premium costs in health insurance.
But experts are saying that this is not a crash in these markets but more of a correction back to what is normal.Well, as tropical storm Alberto makes landfall off the Gulf of Mexico, the National Oceanic and Atmospheric Administration is reporting catastrophe losses topping $25 billion so far this year during 2024 due to extreme weather events.
So what does this set up for catastrophe, losses and insurance and making sure that individuals and homes are protected? This is especially important for those families that live in areas where there may be wildfires, tornadoes and, and also hurricanes, right?You also wanna make sure you're stockpiling savings, make sure you're reviewing your insurance that's critical and make sure you're protecting your credit.
You know, making immediate contact will allow the mortgage company to start tracking your situation and to put initial protections in place to prepare you for insurance payout or, or for federal aid.So, so families that have experienced extreme damage in specific areas, you know, you can work with your mortgage servicer, but there's also that F ma or disaster resistance that's out there too.
Nine out of 10 managers are currently using or planning to use A I in their investment processes according to consulting firm Mercer. I mean, is this something that the client, the the client would engage directly with or something that managers would use and leverage as a tool to say?This is the mix of your portfolio or the risk propensity can that you can add on or where you should perhaps mitigate some of the risk that you currently have in your portfolio right now?The touch point is happening on two places, at least in the most simplest form,...
So managers too are finding ways to integrate that technology into uh their data rooms into how they're reporting information to their investors. We might see at one point A I as one of those levers, how are they utilizing it to enhance productivity to enhance um you know, streamline processes to cut down on other costs of the business?In terms of actual measurability, I think it's still still early days just as long as A I does not shame me about my trades that I'm making that that would just hurt, add insult to injury on the portfolio performance basis.Wealth expanding by 4.7% in 2023.
Fixed deposits is building up real estate is building up and alternative investment is building up, people are slowly but surely moving from wealth preservation, let's be safe to wealth growth.It's starting, let's be realistic. And, and I think back to the COVID pandemic when we saw the massive dip, of course, the bottoming out in late March of 2020.
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