Market Weekly: Feb 5 Feb 9 2018


According to some articles I read today, the extreme VIX instability between current & 2 month out contracts suggests a period of instability. In fact, some BEARS note a 20-30% range with some VIX measures at record levels. I’m hoping that won’t occur, but some greater fear of inflation plus interest rates is driving VIX up. This massive sell-off caught me completely off guard & I don’t even understand reasons for 1,000 point selloffs? Being 99% cash, I’m definitely going to start buying in — but patiently, gradually, & cautiously 🙂

“This is especially true as the CBOE Volatility Index (VIX), also known as the fear gauge, soared 115.6% on Monday, its biggest one-day jump on record, and then hit 50 for first time since 2015 on Tuesday before retreating to 30 at the close. The fear gauge measures investors’ perception of the market’s risks and tends to rise when a stock falls or investor panic starts to set in (read: Inverse Equity ETFs to Bet on Historic Selloff).”