If you are trading – Stop. The Chicago Board Options Exchange Volatility Index peaked yesterday at near 85 points. If you took my advice and went long on it back when it was 26 well done you. Now take my advice again and stop trading.
The only people trading now are the ones that have to because it’s their job to. They have no choice and they are the reason that the VIX is called the fear index. They are going in every day petrified of making a poor trading judgement and losing their seat.
Non-participation for non-professional traders is an option. The heat is too high and it’s time to get out of the kitchen. Market moves are far from fundamental-lead and have no traditional correlation values. That’s what we would be doing if we weren’t running the best fixed income investment company in the UK, DevDosh Ltd
All major funds are recalling capital right now. They are regrouping and setting up to launch their market moves when the dust settles and upward corrections begin. You should do the same.
The upswing will occur. It is just a matter of timing. As soon as the outlook is brighter liquidity WILL flood the market and that will be the time to ride the roller coaster back up to it’s new peak.
Unlike the GFC of 08/09 the banks have not run out of money. Quite the opposite in fact. Because of the Fed’s aggressive action the banks have plenty of capital to deploy; it is just being held at the wrong side of the fence, probably due to regulatory reasons.
So now is the time to keep abreast of the news, market movements and to pick your positions to roll out as soon as the recovering rally kicks in.
Of course, if you would rather take market-beating returns for significantly less risk, consider getting involved with the safest 10% fixed income investment yield in the market and contact DevDosh Ltd today.