Soham Das

Stocks Will Bottom Before the Economy

Hi Chris,

It is but a common knowledge that stock markets lead the economy by approximately two quarters.
While, the common socioeconomic mood will worsen (or lets say hit a bottom), investing will see higher and higher VIX . And this might be an interesting thing for long term buyers, because often higher volatility is marked by a significant bottom.

So you might say, that worsening socio economic mood is helping stock market to bottom out.[Just a perspective, its extensively used by options traders]

So the question we might be asking here is, is this the bottom?
Who knows?
Is this the time to invest?
You bet!

In what?
Frontline stocks, midcap stocks, commodities [the great commodity bull run should be starting any time now], precious metal etc.