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Volatility in Markets Will Increase Soon–Buy the VIX!

As we all know Mr. Bernanke has put a floor under the market and caused it to double since March 09 lows with his excessive money printing, but the rise in the market will end at some point and volatility (VIX is currently 16.43) will reach for the sky. The markets here in the U.S. are calm and still rising, despite the unrest in the middle east and around the world; not to mention rising oil, gas, food, clothing prices, and don’t forget the national, state, county and personal debt problems we have here in the U.S.  The markets are ignoring some very serious problems, indicating it is now in its speculative stage and  and the greater fool theory is currently being employed to full effect.  There will be a pullback soon; within the next 30 days or so. The previously mentioned economic and social turmoil here and in the world is not yet reflected in the markets I see it as an enormous opportunity to grab some quick cash or to hedge the downside. So…one of the safest, low risk investment bets you can make is to buy the VIX when the markets open back up on Tuesday, provided nothing causes it to spike between now and then.  Happy Presidents day.

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