Finally There’s Some Volatility

Aug 17, 2017
J. Webster
Comments Off on Finally There’s Some Volatility

The $VIX is still alive. Just when everyone thought the market would never go down, it finally did and volatility has returned. I bet if you bought the $VIX just when all those articles about how the $VIX was so calm and quiet and it’d been ages since it moved at all, you’d be pretty happy right now. The $VIX shot up around 30% just today. Volatility is back.

How many articles have to be written before the bottom is in for something? Is there a number or average? Usually it’s the front page of the paper thing, when the market is on the front page of the paper for a while then you know the highs or the lows are near. It’s talked about so much it signals the trend ending, whether that trend has been down or up.

It’s seemed like, or after the fact now we can say, that the bottom for the $VIX was around $9 or $10, it hung around that number for a while and didn’t dip much lower. But the last few weeks or so we’ve seen volatility return to the stock market and it looks like it’s going to be around for a while.

Who’s know were it will go from here but you’d have to say that the $VIX will return to $20 or $40 sometime in the future, but who’s going to buy and hold the $VIX for that long. But considering that the man who is the current president right now is quite volatility himself, it wouldn’t come as a shock that the $VIX is hyper-volatile while he’s in office in the next three years or so.

The bigger spike in the $VIX last week, when it shot up 45%.

Someone who has said that volatility is coming is Jeff Gundlach. And I guess he thinks it will stay for a while:

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