Here’s a decent gauge of the wild sentiment ride the fiscal cliff sent the markets on in recent weeks….
- In the days leading up to the fiscal cliff the VIX started to rally as worries over a deal materialized.
- On the 28th as it looked like we were “going over the cliff” traders were positioning for downside as the VIX surged to 23 from 15 just a few weeks earlier.
- Then the collapse. The VIX plummets back to earth as the markets realize that the fiscal cliff was essentially much ado about nothing….
Read Some Related Articles on Pragmatic Capitalism -
There Isn't $10.8 Trillion "Stuffed Under Mattresses" Because of QE
I have to comment on this MarketWatch piece because I've now seen a number of people comment on it claiming that consumers are choosing to hold more low interest bearing ...read more
Is the Global Financial Asset Portfolio the Perfect Indexing Strategy?
If there was such a thing as an indexing purist that person would simply buy all of the outstanding available financial assets in the world and call it quits. In ...read more
AI, Robotics, and the Future of Jobs
This is a good piece sent courtesy of John Mauldin. It goes well with this video which is a pretty scary perspective of what the robots could do ...read more
Is a Big Equity Correction Imminent? Not Yet
Many investors think US stocks are due for a correction: They feel that the market has run too far, that the Fed has been slow to act, that complacency has ...read more