The severity of this week’s global sell-off in equities seems to have taken a lot of people by surprise. Five weeks ago, I wrote about the multi-year lows of the Chicago Board Options Exchange Market Volatility Index (the “Vix”) and the complacency it warned of. As I pointed out “the market loves nothing more than to punish complacency”. If you watched a screen of Thursday’s carnage in America, this is pretty much exactly what happened. The question now is, is this the beginning of the end of the bull market or just a healthy pullback, accentuated by low summer trading volumes?
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Comments
Robert
Can understand your frustration missing the trade, but not as frustrated as yours truly who placed the trade, got stopped out. Rinse and repeat x3! Must grow some and not set such tight stops…