VIX: Managing Financial Armageddon! by Bani Arora
If the VIX breaks out of its normal 20–30 range, how can you manage the spike in volatility and still make money? Here are some options to consider.
As famous British statesman Edmund Burke once said, “No passion so effectually robs the mind of all its powers of acting and reasoning as fear.” Currently, continued concerns over the Chinese currency devaluation lurk; oil prices don’t seem ready to get out of their deep, slumping trough; and quantitative easing hasn’t helped central banks achieve their inflation targets yet. Instead, talk of negative rates in the US is picking up steam; a corporate debt crises cannot be ruled out; and the list goes on. All these uncertainties have the power to drive markets lower, as we saw in early 2016...