Tuesday 9 August 2011

VIX Tops 46, Global Volatility Soars as S&P Lowers U.S. Sovereign Rating

http://www.bloomberg.com/news/2011-08-08/vix-global-volatility-gauges-soar-after-s-p-lowers-u-s-rating.html

The HSI Volatility Index of options of the Hang Seng Indexsurged 56 percent on Aug. 5, the biggest one-day gain in its decade-long history. The gauge has almost doubled in the past week. The VStoxx Index (V2X) of Euro Stoxx 50 options prices extended its longest rising streak on record after jumping 42 percent last week. The European stock index today fell 3.7 percent for a record 11th straight day of loss. It closed at 2,286.91, its lowest level since July 2009.

SAMEER SAYS

I V ALREADY SAID LONG BACK THAT VIX WAS AT A LOW NEAR 16

THE VIS WILL SURGE AND THIS IS ONE ASSET TO HOLD ON LONG TERM BASIS AS THIS IS JUST THE START OF THE RISE OF THE VIX

I V SAID IN THE PAST THAT THE VIX WILL CROSS 89 - IE THE 2008 HIGH IN OCT

WE CAN ALSO SEE A TRIPLE DIGIT VIX

TODAY VIX WAS AT 46

THE ASSETS TO HOLD FOR THE NEXT 4 YEARS ARE

US DOLLAR
SHORT TERM US T BILLS
CASH
SWISS MONEY MARKET CLAIMS
VIX

IN MY EXPECTED DEFLATION SCENARIO - PRICES OF ALL ASSETS SHOULD FALL

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