Carlsquare weekly market letter: Risk implosion ahead of Fed decision

Read the weekly letter here:

Carlsquare Weekly market letter

• The S&P 500 continues to climb due to solid earnings reports. Implied stock market volatility trades near record lows, showing that the calm markets may lull investors into security.
• This week is essential from a news flow perspective with the Fed decision tonight and the monthly payroll figures in the US on Friday, 5 May, which probably will move the market sharply in either direction.
• It is still cheap to buy protection!

S&P 500 tests year-to-date high amid calm markets. The calm in equity markets is illustrated by the VIX, which is close to a 12-month low.

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