Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye Macro analyst Ben Ryan. Click here to learn more about the Early Look.
As we show below in the Chart of the Day, a ratio series of the S&P 500 volatility index (VIX) relative to the Russell 2000 volatility index (RVX) is at 5 and 10yr highs with large-cap growth volatility and rates-rising biases having been suffocated over the last month.
The winners continue to win, but in 2018 it’s volatility management that has been a curveball. We continue to ride the same exposures while more intensively monitoring underlying internals and potential phase transitions.