🔻It was a sea of red yesterday afternoon as the HSI, Nikkei...
🔻It was a sea of red yesterday afternoon as the HSI, Nikkei225 and SIMSCI gave up morning gains to finish in the red. The S&P500 and Nasdaq-100 futures were also down by more than 1% by 420PM yesterday
⚠The glum mood came on the back of Wall Street CEOs forewarning investors of a significant selloff in the coming period as a normal feature of market cycles
💲Notably, CEO of investment manager Capital Group said in a summit yesterday that while corporate earnings are strong, valuations are currently challenging
👤Morgan Stanley CEO Ted Pick pointed out that investors "should also welcome the possibility that there would be 10 to 15% drawdowns that are not driven by some sort of macro-cliff effect," which is a "healthy development"
📰According to Bloomberg, the S&P 500 index is trading at 23 times forward earnings estimates, above its five-year average of 20 times. Similarly, the Nasdaq 100 Index fetches a multiple of 28 times, compared with nearly 19 times in 2022.
📈Put warrants can be used to hedge against short-term pullbacks as they tend to gain in price when the underlying stock/index comes off
✴As an example, Macquarie's trending put warrant tracking the S&P500 $S&P 5900MBePW260320(X1MW.SI)$ (https://warrants.com.sg/tools/livematrix/X1MW) was up 8.2% to SGD 0.066 yesterday given the 1% drop in S&P500 futures as of 430PM, while trending Nasdaq-100 put warrant $NASDAQ 22000MBePW260320(PZBW.SI)$ (https://warrants.com.sg/tools/livematrix/PZBW) was up 7.8% to SGD 0.055 on the futures' 1.3% decline.
✳Meanwhile, bullish investors may consider the trending call warrants $S&P 6850MBeCW260320(KWTW.SI)$ (https://warrants.com.sg/tools/livematrix/KWTW) and $NASDAQ 25500MBeCW260320(XJIW.SI)$ (https://warrants.com.sg/tools/livematrix/XJIW), as they track the movements in the respective underlying futures
📲One can use the Exposure Simulator tool (Singapore Warrants | Trading Stocks and Index Warrants | Macquarie) to estimate the warrant investment amount needed to replicate an equivalent level of exposure to an investor's current shareholding
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Macquarie Warrants Singapore
The official account of Macquarie Warrants Singapore
Macquarie Warrants Singapore is an issuer and market-maker in Macquarie warrants listed on the SGX.
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