How Does Bridgewater, the World’s Largest Hedge Fund, Really Make Money?

The stock index trended above its prior highs, and it's done so with strong momentum as measured by its own relative strength, which is extended on the upside to reflect the buying pressure. Although strong momentum is a good thing, too much too fast increases the odds the buying enthusiasm may be nearing an end.

Using data from CarGurus we take a peak at price trends over the last few years of Exotic cars including the McLaren 720, Lamborghini Huracan, Lamborghini Aventador, Tesla, '69 Camaro

Risk mitigation refers to the process of identifying, assessing, and taking actions to minimize or control the potential negative impacts of risks on a project, organization, or an investment portfolio. Risks are uncertainties that have the potential to cause harm, a loss, disrupt operations, or negatively affect the achievement of objectives. Risk mitigation aims to reduce the probability of these risks occurring and/or minimize their potential consequences if they do occur.

An option has convexity because the relationship between the price of the underlying asset and the value of the option is not linear.

We actively monitor several investor sentiment gauges that indicate how optimistic or pessimistic investors are about the stock market. One of the sentiment indicators we monitor is the Citigroup Panic/Euphoria Model. When it reaches an extreme, I comment on it here.