Volatility and uncertainty are back with a bang
Turmoil on the world markets began last week when, by the end of Monday, $4 trillion-worth of equities values had been wiped out around the globe
What a difference a week makes. Following months of historically low volatility, the start of this week marked the largest daily move in the Chicago Board Options Exchange (CBOE) volatility index, VIX, on record. On Monday, the markets’ ‘fear gauge’ rose 115.6 per cent on the previous week’s closing, forcing heavy losses on the cottage industry of traders who make their living shorting the index.
One exchange traded fund, XIV, that makes its ...