Stock market investors may be underestimating the risks associated with President Donald Trump’s customs policy, according to Mandy Xu, a top volatility expert at Cboe Global Markets. CBOE’s volatility index, a measure of stock market volatility over the next 30 days, is down nearly 50% from its peak of 60.13, which hit Wednesday. The move coincides with recent stock rebounds, but Xu claims the market spin isn’t over yet. “The macro outlook is far more uncertain than what’s being put into the stock market today,” the company’s Derivative Market Intelligence Head told CNBC’s “Fast Money” on Monday. Xu highlights the “unusual” situation where bond yields are moving high alongside stocks, with 10-year Treasury bond yields shortly above 4.5% on Friday as investors fled US assets. “Our VIX [20+ Year Treasury] The TLT indicator, which measures bond market volatility, rose 60 points last week. Xu added. According to Xu, Xu added. “According to Xu, warning signals about the macroeconomic environment could flash. She also acknowledges that the bond market is signaling the potential of “fast money.” “Obviously, it’s the dollar, it’s the yield, it’s the stock market. [It] As for the market swing, it suggests it’s worth waiting to buy downside protection on the S&P 500. “There’s technically a lot of overhead resistance at this 5,750, 5,800 level. Melissa Lee and the “Fast Money” traders will be performing live on Times Square’s Nasdaq MarketSite on Thursday, June 5th.
