“A Sinking Feeling” – Vista Partners Daily Market Recap 11/12/2018
US stocks sank today, with all three major indices dropping throughout the day and eventually ending solidly in the red by the close of trade. The S&P 500 lost 1.97%, and the Nasdaq tumbled 2.78%. The Dow had dropped 2.32% by the end of the session.
With the drop in the markets today, our investment in VelocityShares Daily 2x VIX ST ETN (TVIX) closed today at $44.15 representing a whopping +16.12% increase from Friday’s close. The TVIX investment seeks to replicate, net of expenses, the returns of twice (2x) the daily performance of the S&P 500 VIX Short-Term Futures index. The index was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. The ETNs are linked to a multiple (2x) of the daily return of the index and do not represent an investment in the VIX.
Components of the Dow were down nearly across the board, with some companies seeing especially large losses. Goldman Sachs (GS) saw the biggest drop today as it plummeted 7.46%. Apple (APPL) wasn’t too far behind with a loss of 5.04% after reports from one of its parts suppliers indicated there may be decreasing demand. The Home Depot (HD) saw shares tumble 3.53%.
While not a component of the Dow, Atossa Genetics didn’t fare any better as it took losses of 5.51% today.
Remember that typically when there is seeling to this degree that extreme value opportunities present themselves throughout as indiscriminate selling seems to take all down. Try to stay clear-headed throughout this situation & when this happens.
Outside the stock market, oil prices continued their prolonged drop today despite Saudi Arabia’s announcement that it will slash exports by 500,000 barrels per day in December. This marks the eleventh session in a row that oil prices have declined.
President Trump seems to have taken credit for these declines in price of oil and stated “If you look at oil prices, they’ve come down very substantially over the last couple of months. That’s because of me. Because you have a monopoly called OPEC…and I don’t like that monopoly.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!