JP Morgan warns of a hidden volatility time bomb in the stock market.
Any move to the downside could be amplified in a major way.
Option-based ETFs are volatility suppressors, posing risks to the equity markets.
The corporate buyback blackout window and tax day are potential catalysts for a market selloff.
Traders and investors are advised to control their risk and be prepared for potential volatility.
What is the hidden volatility time bomb in the stock market?
—JP Morgan warns that any move to the downside could be amplified in a major way, potentially causing a significant market selloff.
What are option-based ETFs and why do they pose risks to the equity markets?
—Option-based ETFs are volatility suppressors, designed to suppress volatility. However, if volatility starts to rise, these ETFs could lead to an accelerated move to the downside.
What are the upcoming catalysts for a market selloff?
—The corporate buyback blackout window and tax day are mentioned as potential catalysts for a market selloff.
What should traders and investors do in light of this market warning?
—Traders and investors are advised to control their risk and be prepared for potential volatility. It is crucial to have a risk management strategy and be proactive in managing investments.
Should investors be concerned about the current state of the equity markets?
—While the equity markets have shown signs of complacency and increased risks, it is essential for investors to stay informed, assess their risk tolerance, and make informed investment decisions.
00:00JP Morgan has issued a warning about a hidden volatility time bomb in the stock market.
05:12Option-based ETFs are volatility suppressors, posing risks to the equity markets.
10:28The corporate buyback blackout window and tax day are mentioned as potential catalysts for a market selloff.
15:46Traders and investors are advised to control their risk and be prepared for potential volatility.
