- The VIX is especially liked by the media because it’s based on what has happened. However, the VIX has no forecasting power.
- We’re looking at an historically low VIX which indicates a complacent market, this creates cheap downside protection for those who fear a fall.
- Nevertheless, there are interesting opportunities to take advantage of the low VIX for the brave.
We constantly hear news about the VIX index. However, few really know how the VIX index is derived, what its importance is in the financial world, and if it even has an influence on your portfolio. As the VIX index is at all-time lows, it’s a good time to discuss what it is and if there is an opportunity to take advantage of it. More →