VIX Blowup a Brutal Lesson That Payoff Matters, Not Forecasts
- Vol-shock fading as move largely technical/positioning driven
- Solid synchronized global growth still needs reasons to break
VIX Futures Contracts Spike to Record Net-Long
This article is for subscribers only.
Volatility is back, for now.
The blowup in short-volatility related VIX exchange-traded products is a lesson that what matters is the payoff, not forecasting. Ignoring negative convexity, the tendency for volatility to outpace the relative decline in equities, can be destructive.