Posted by: jhamon | October 16, 2009

MysteryHedgie Notes VIX On Support

MysteryHedgie Notes VIX On Support:

Goldman Sachs, Google, Bank of America, General Electric.  Two upbeat earnings reports, two decidedly less so.  The common thread is that since the peak of risk taking in late 2006, volatility in corporate earnings, economic performance, and asset prices has risen, albeit with highs (fall 2008) and lows… Looking at the below chart of VIX, we believe another low to be at hand. 

Examine your positions carefully, and where it makes sense to do so, add an element of optionality, whether for protection (we see US$/carry themed positions, Gold, EFA, EWZ, MOO, NZDJPY vulnerable to profit taking) or for leverage/enhancement (selected technology exposures, healthcare, investment themes correlated to rallying laggard commodities such as cotton and lumber). 

Thoughts?

VIX at suppport...?

VIX at suppport...?

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