Wall Street Quants Set to Buy $50 Billion in Stocks as Volatility Falls.

The article from Bloomberg.com discusses how the stock-market surge following Donald Trump's presidential victory is prompting rules-based investment funds to buy $50 billion in stocks as volatility decreases. Wall Street had anticipated a rocky period after the election but instead saw the VIX Index drop significantly, leading to a surge in the S&P 500 Index. Volatility-controlled funds are expected to increase their US shares holdings by $50 billion in the next month and $110 billion by January, with a shift towards global equities predicted. The article highlights the technical factors and strategies driving this market behavior, including unwinding election hedges, re-levering, buybacks, and the impact of option contracts. [Extracted from the article]