GAL Forecast


Bullish Case: The high implied volatility of GAL options suggests increased speculative interest. Given the historical returns, which show a greater likelihood of positive outcomes over long holding periods, a bullish scenario could arise from improving market conditions or geopolitical stability.




Bearish Case: A general decline in implied volatility indicates fading market confidence. Key risks include geopolitical tensions or economic downturns, which historically have correlated with significant price declines, as shown in the tepid historical return projections for both short and long holding periods.




Potential Outcomes:

1. Economic recovery boosts GAL (40% likelihood).

2. Geopolitical tensions exacerbate, leading to price drop (35% likelihood).

3. Continued price stagnation due to low trading activity (25% likelihood).




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November 15, 2024


SPDR Global Allocation Forecast

GAL        SPDR Global Allocation











Correlated Assets

Assets that tend to move strongly with GAL



SPXL Forecast + Options Trading Strategies   SPXL  Direxion Daily S&P 500 Bull 3X Shares (0.98)


KKR Forecast + Options Trading Strategies   KKR  KKR (0.97)


XLG Forecast + Options Trading Strategies   XLG  Invesco Capital Management LLC - Invesco S&P 500 Top 50 (0.97)


TT Forecast + Options Trading Strategies   TT  Trane (0.97)


MOD Forecast + Options Trading Strategies   MOD  Modine Manufacturing (0.96)



Uncorrelated Assets

Assets with little price relationship to GAL



PTON Forecast + Options Trading Strategies   PTON  Peloton Interactive (-0.01)


EWY Forecast + Options Trading Strategies   EWY  iShares MSCI South Korea (-0.01)


IVR Forecast + Options Trading Strategies   IVR  Invesco Mortgage (-0.01)


S Forecast + Options Trading Strategies   S  Sprint (-0.02)


URBN Forecast + Options Trading Strategies   URBN  Urban Outfitters (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against GAL



OCSL Forecast + Options Trading Strategies   OCSL  Oaktree Specialty Lending (-0.88)


RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.89)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.9)


JACK Forecast + Options Trading Strategies   JACK  Jack In The Box (-0.9)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.98)









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