The market has stopped pricing risk. Investors just want more AI.
ComplacencyThe market continues to behave as if risk no longer exists. Investors keep chasing upside through options, skew keeps collapsing, and volatility remains surprisingly well bid despite record highs in equities. The message from derivatives markets is becoming increasingly one-sided.Enter no panic
Investors are now in full panic mode to avoid panic.
Rising yields. Exploding rates vol. Investors still panic-buy MegaCap AI upside calls. Late-90s Nasdaq behavior is back.
Fear is disappearing. The chase for AI isn't.
This market is starting to look dangerously similar to 1997 again. Bears keep getting squeezed, call chasing is exploding and…
Everybody is chasing the same trade. We're more interested in what they're ignoring.
"While the willingness to shield markets may endure, the capacity to do so is less."
