For more insights like these, visit BCM’s blog at blog.investbcm.com.
Sources and Disclosures:
¹Levine, Matt. “Inverse Volatility Products Almost Worked.” Bloomberg.com, Bloomberg, 9 Feb. 2018
*If you’re thinking “fast forward to today? I would have sold the top!” stop it and be honest with yourself. You probably would have bought more.- Denis Rezendes, Beaumont Capital Management
**Let’s be real. Who only buys 1x when 2x is available? – Denis Rezendes, Beaumont Capital Management
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The VIX® is used by stock and options traders to gauge the market’s “anxiety” or “fear” level. It is a mathematical measure of how much the market thinks the S&P 500 Index option, or SPX, will fluctuate over the next 12 months, based upon an analysis of the difference between current SPX put and call option prices. The CBOE Volatility Index (VIX) is a registered trademark of Chicago Board Options Exchange, Incorporated. All index names of the Barclays indices are trademarks of Barclays Bank PLC.
The CBOE Volatility Index® (VIX)® is based on the S&P 500® Index (SPX), the core index for U.S. equities, and estimates expected volatility by averaging the weighted prices of SPX puts and calls over a wide range of strike prices. Indices are not managed and do not incur fees or expenses. ETF performance shown is net of the ETF’s fees.
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