Option prices betting on a further 10% decline in stock market valuations are at their lows since 2017, reports Bloomberg. This suggests that investors are betting that further downside movements are increasingly unlikely.
Stock markets have already wiped out $13 Trillion in value globally, leaving only the more sophisticated investors invested.
Bloomberg suspects that the reason for the turnaround in investor sentiment is that traders have become desensitized to negative market outlooks and are starting to look through the bearish noise. Further rate hike increases and the fallout of the war in Ukraine might already be priced into the markets.
