Gateway Investment Advisers

#QTD as of August, 31 2024 Returns: #SPX          3.67% #PUT        4.02% #BXM        4.08% #AGG       3.81% #VIX Daily Close Average: 16.79 (High: 38.57,  Low: 12.03) #volatility #markets

#August 2024 Monthly Returns: #SPX       2.43% #PUT      2.39% #BXM     2.91% #AGG     1.44% #VIX Daily Close Average: 19.31 (High: 38.57, Low: 14.65) #volatility #markets

US presidential election cycles generally create heightened volatility in the markets, and the current cycle is no different from the trend. Listen to Gateway Investment Advisors' Joe Ferrara and his take on volatility vs. quality in the second half of 2024:

The notional coverage of a covered call writing strategy is important for investors to explore and fully understand before investing. ‘Half Full’ looks at the differences between the Cboe® S&P 500 BuyWrite Index (BXM) and the Cboe® S&P 500 Half BuyWrite Index (BXMH) and compares total return, upside capture, and risk relative to the fully covered BXM. Read on for more detail and other important information > https://lnkd.in/gfK-EJ6j

Despite a brief rally at the end of July, the S&P 500® Index recently marked a new 2024 year-to-date maximum drawdown of -8.45% from July 16 to August 5 after international markets and soft U.S. economic data resurrected recession concerns. The Cboe® Volatility Index ($VIX) closed at 38.57 on August 5 – its highest level since October 2020.

Trailing 1-Year Returns as of #July 31, 2024: #SPX        22.15% #PUT         9.09% #BXM        8.59% #AGG        5.10% #VIX Daily Close Average: 14.54 (High: 21.71,  Low: 11.86) #volatility #markets

YTD 2024 through #July 31 Returns: #SPX        16.70% #PUT         9.09% #BXM        8.81% #AGG        1.61% #VIX Daily Close Average: 13.93 (High: 19.23, Low: 11.86) #volatility #markets

#July 2024 Monthly Returns: #SPX       1.22% #PUT      1.59% #BXM     1.13% #AGG     2.34% #VIX Daily Close Average: 14.37 (High: 18.46, Low: 12.03) #volatility #markets

Summertime volatility has been easy going, though expectations are growing of a shift higher near the U.S. presidential election. Now may be the time to consider Gateway’s options-based strategies which can benefit from volatility in either environment. Volatility expectations (and results) have differed in recent election years. Regardless of the outcome, Gateway can help investors navigate the market with a focus on stability, risk-adjusted performance, and long-term growth while generating cash flow with options. Learn more about volatility in election years, and other important information, in this month’s Perspective – The Election Episode. https://lnkd.in/gZJyhPCD

The second quarter of 2024 started with a slump as the euphoria of expected rate cuts fizzled out like soggy fireworks. The equity market rallied to finish strong, however, as denial turned to acceptance of normalized rates. The Volatility Risk Premium, or VRP, was robust throughout the quarter but, in June, reached levels not seen since October 2021. Learn more and other important information > https://lnkd.in/g3FZfkVz