Risk off sell everything, payrolls preview, equity volatility is the only escape valve and fasten your seat belt
This week’s report Be Greedy When Others are Fearful
Figure 1: SPX risk is the S&P 500 Volatility, the Volatility of Volatility, correlation and skew indices as well as the term structure of VIX futures (6 month less 1 month) in a z-score format. Wednesday it expanded to 2.43 standard deviations, it remained above 2 on Thursday and Friday. We consider these readings high relative to underlying economic conditions. The election and latest surge in Covid-19 cases appear reasonably discounted.
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Lehman Veterans Knapp, Curnutt Reunite at Macro Risk Advisors
2020-10-30 16:14:49.326 GMT
By Sonali Basak
(Bloomberg) -- Barry Knapp is reuniting with former Lehman
Brothers Holdings Inc. colleague Dean Curnutt as the duo seek to
expand their work advising large investors.
Knapp, who previously worked at Guggenheim Securities and
BlackRock Inc., is keeping his own research firm, Ironsides
Macroeconomics, while also working as a senior adviser to
Curnutt’s Macro Risk Advisors. The two worked together in the
1990s at Lehman during what Knapp calls the “glory days of
equity derivatives.”
“We were doing ETF-like transactions with macro hedge funds
before there were ETFs,” Knapp said in a phone interview,
referring to exchange-traded funds. “I did a Russell 2000 swap
before there were Russell 2000 futures.”
Curnutt founded his company in 2008 to advise institutional
investors on market risks. He previously was head of equity
sales and trading at Bank of America Corp. and, before that,
worked in the equity derivatives unit at Lehman in the four
years through 1999, according to his LinkedIn profile.
Knapp joined BlackRock’s fixed-income investment-management
division in 2014, after almost two decades at Lehman and then
five years at Barclays Plc. He joined Guggenheim in 2017 and
left about a year later.
Knapp’s “macro expertise will be a welcome addition to the
set of tools we bring to clients to help navigate markets and
risk at a time of great uncertainty,” Curnutt said by phone.
“Having known Barry for 25 years and worked with him before, I
have a strong appreciation for his talents and expertise.”
If there are any questions about the above Bloomberg story please contact me
Barry C. Knapp
Managing Partner
Director of Research
Ironsides Macroeconomics LLC
908-821-7584
bcknapp@ironsidesmacro.com
https://ironsidesmacro.substack.com
https://www.linkedin.com/in/barry-c-knapp/
@barryknapp
Reading List
Latest Book: “A History of the Federal Reserve, Volume 2, Book 1, 1951-1969”, Allan H. Meltzer
Next Book: “Human Action, The Scholar’s Edition”, Ludwig von Mises
“Trade Wars Are Class Wars”, Matthew C. Klein & Michael Pettis
“Showdown at Gucci Gulch, Lawmakers, Lobbyists, and the Unlikely Triumph of Tax Reform”, Jeffrey H. Birnbaum and Alan S. Murray
“A Great Leap Forward, 1930s Depression and US Economic Growth”, Alexander J. Field
“1493, Uncovering the New World Columbus Created”, Charles C. Mann
“Great Society, A New History”, Amity Shlaes
“The Second Machine Age”, Erik Brynjolofsson, Andrew McAfee
“Grand Pursuit, the Story of Economic Genius”, Sylvia Nasar
“The Rise and Fall of the Great Powers”, Paul Kennedy
“Capitalism in America, A History”, Alan Greenspan & Adrian Woolridge
“Diversity Explosion, How New Racial Demographics are Remaking America”, William H. Frey
“Clashing Over Commerce, A History of US Trade Policy”, Douglas A. Irwin
“Destined for War, Can America and China Escape Thucydides’s Trap”, Graham Allison
“The Constitution of Liberty”, F.A. Hayek
“Judgement in Moscow, Soviet Crimes and Western Complicity”, Vladimir Bukovsky
“1931, Debt, Crisis and the Rise of Hitler”, Tobias Straumann
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