In the early weeks of 2025, investors have been navigating significant market challenges, from President Donald Trump's uncertain policies to unexpected earnings reports. RBC Capital Markets equity derivatives strategist Amy Wu Silverman joins "Market Domination" to discuss the details.
Silverman notes that although the options market has been relatively calm, with the Volatility Index (^VIX) not surpassing the 20 mark, there is still volatility hidden beneath the surface, as sector rotations and stock-specific risks drive significant dispersion in the market.
"The dispersion in the market is really high right now, and all that means is you essentially have some sectors going one way and other sectors going the other way — and it has this effect of canceling out on an index level," Silverman explains. "But it doesn't mean that there aren't those violent rotations."
Watch the video above to hear Silverman discuss how stock picking and sector selection have become even more crucial in this market environment, where macro trends are less correlated.
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This post was written by Josh Lynch