The VIX is again spiking. Think of the VIX as a fear gauge. The VIX is essentially a measure of what options investors are willing to pay for protection. When fear is very high they are willing to pay more for protection and this results in a spike in the VIX. Don’t be surprised if we see a repeat of the January, March and July fear levels very soon. Thursday’s 300 point loss may have been that shot across the Dow’s bow….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.