Just about once per annum the market enters the Twilight Zone, as the disbelievers snatch the purses of the anointed and send markets lower. Over the years, we’ve witnessed a steady, almost methodical, walk down of volatility, partly due to the manipulative measures being practiced at the Federal Reserve. As such, we’ve enjoyed pornographic stock returns and the elimination of the “bear class.”
However, almost like groundhog’s day, the bears make an appearance once or twice per year to remind everyone that markets do in fact go down–on occasion.
I believe we are entering such a period, albeit a brief one. During the month’s of May and June, the lot of you will die in despair, tortured by mountainous market calamities. If my losses in VIX/VXX weren’t upwards of $5 million since 2010, I’d try my hand at it right now. However, due to the exogenous circumstances of my pervious VXX endeavors, I’ve reserved it for my annual Halloween costume only, mainly to scare the adults–sending them indoors.
In short, prepare for a miniature meltdown, which will correct (extra Mr. Grady) the lowest of the low among us and turn them into honest men again.
Volatility is cheap and it’s only going to get more expensive from here.
