Why Stocks Are Getting Wild

On "The Markets," Chris Hussey interviews Brian Garrett to discuss current market volatility and investor positioning. Garrett attributes market fluctuations primarily to uncertainty surrounding the Federal Reserve's December rate decision, noting that shifting expectations have led to significant rallies and sell-offs. He observes a rotation among investors from high-growth tech stocks into more defensive sectors like healthcare, financials, and industrials, suggesting a cautious approach. The conversation also covers increasing market volatility, decreasing liquidity, and the potential impact of systematic trading on global equities. Garrett offers hedging strategies, including rotating into equal-weighted S&P indices and using VIX call spreads, while emphasizing the critical role of the Fed's decision in year-end market performance.