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Josh Ortner
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Joshua Ortner is an investment advisor at Ortner Capital Management. A tactical long/short fixed income advisor to ultra high net worth investors. Josh studied financial management at Kent State University with specializations in active investment management.
My company:
Ortner Capital Management
  • Volatility on Sale! 0 comments
    Dec 22, 2010 5:17 PM | about stocks: VXX, VXZ
    Have you seen the headlines? Markets hit all-time highs! Investor’s bullish sentiment reaches pre-financial crisis highs! Just when you thought, you have nothing to worry about on Wall Street before Christmas, some investment advisor mentions the CBOE Volatility index reading of 15.45, the lowest reading all year.

    One year chart of VIX
     
    This frightens me very much. Many institutional investors have noted that the VIX reading in the teens is very common in a maturing bull market. However, is this a maturing bull market? Risks such as the European debt crisis or even Meredith Whitney’s new call on the next financial crisis of the municipalities, has me doubting that these past historical readings of the VIX will happen anytime soon.
     
     
     
    No matter which time period you use to look at the VIX, one, three, or ten, the index is cheap (NYSEARCA:VXX) (NYSEARCA:VXZ).


    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in VXZ over the next 72 hours.
    Stocks: VXX, VXZ
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