Current and former Tesla employees working in the company's open-air "tent" factory say they felt pressure to take shortcuts to hit aggressive Model 3 production goals,...Technologyread more
The one-to-eight stock split would mean the current number of ordinary shares — which stands at 4 billion — will increase to 32 billion. It comes ahead of a reported Hong Kong...Asia Marketsread more
Minutes from the Reserve Bank of Australia's monetary policy meeting in July showed the central bank was ready to adjust interest rates if required.Asia Marketsread more
The findings by McKinsey and Company come amid a year-long tariff fight between the U.S. and China, which has spilled into areas such as technology and security.China Economyread more
Microsoft's considerable reach into the corporate world isn't something Slack CEO Stewart Butterfield is very concerned about.Technologyread more
In a closed-door meeting at a Manhattan mansion, executives outlined changes to controversial software that was implicated in two crashes.Aerospace & Defenseread more
President Donald Trump and the RNC are picking up key supporters in the business community who did not back him as a candidate in 2016.2020 Electionsread more
Amazon workers in Minnesota and Germany are striking as Prime Day kicks off, in a stand against working conditions and wage practices. The action in Minnesota represents the...Retailread more
Treasury Secretary Steven Mnuchin is raising red flags ahead of Facebook's proposed cryptocurrency launch.Marketsread more
Beto O'Rourke's campaign for the 2020 election raised just $3.6 million in the second quarter of this year, putting him in the lower tier of candidates who have struggled to...2020 Electionsread more
Epstein is accused of sexually exploiting dozens of underage girls from 2002 through 2005 at his New York and Florida residences. He is a former friend of Presidents Donald...Politicsread more
Investors have been flip-flopping between optimism and pessimism for months. But one indicator is warning investors to brace for trouble ahead.
One way to measure the mood of investors is by comparing the S&P 500 High Beta Index versus the Low Volatility Index. When the High Beta Index races ahead, that means investors are looking for thrills and willing to throw caution to the wind in the pursuit of big gains, says Sam Stovall of S&P Capital IQ. But when the Low Volatility Index assumes leadership, that's a signal investors are hunkering down.
Using this measure, Stovall says investors have taken a decidedly defensive stance since July 31, showing that risk is out of fashion in the market since the market set a new high in May. This "risk-off mindset" signals a tough time ahead for investors in August, he says. "In the month ahead, investors may therefore be more inclined to focus on their tans than on their portfolios," he says.
The outperformance of low volatility stocks shows that investors are expecting August to again live up to its reputation as being a lousy one for stocks. The month of August ranks as the tenth worst for investors since 1945, Stovall says, just behind February and the infamously bad September. But August doesn't just hand losses to investors - but nerve-rattling moves. The month of August has put investors though the second highest level of volatility since 1950 based on the number of days the market swings by 1% or more. Only October is worse.
Follow Matt Krantz on Twitter @mattkrantz