We’ve all been having a nice time in the market — drunk from the gains and the excess of avarice. But is now a good time to recoil, spit back into the backwash of yesterday’s market winners and take up a new avocation? Perhaps shuffleboarding?
Look at the chart of the VIX and notice how this level is pretty much bottom for the past 5 years. Complacency is at a low point and markets an ebb tide.
My last foray into VIX was via XIV and I got wiped the fuck out clean in it, thanks to not having time to have read the prospectus. On page 147, it clearly stated buyers would get swallowed whole by giant pelicans should the index move higher in any meaningful way.
Although I’m reticent to act upon this, would it be wise, perhaps, to take a step back from high octane balls to the wall earnings plays?
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