Here’s a decent gauge of the wild sentiment ride the fiscal cliff sent the markets on in recent weeks….
- In the days leading up to the fiscal cliff the VIX started to rally as worries over a deal materialized.
- On the 28th as it looked like we were “going over the cliff” traders were positioning for downside as the VIX surged to 23 from 15 just a few weeks earlier.
- Then the collapse. The VIX plummets back to earth as the markets realize that the fiscal cliff was essentially much ado about nothing….
Never a dull moment in the markets….
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Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.