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A volatility bull (and sort of stock market bear) throws in the towel, with MKM's Jim Strugger...

A volatility bull (and sort of stock market bear) throws in the towel, with MKM's Jim Strugger warming up to the "new reality of a lower volatility regime and its implications." A new era of fundamental analysis without fear of the macro environment is upon us, he says. Three weeks ago (and for the last several years), he sang a different tune.
Comments (12)
  • bbro
    , contributor
    Comments (9845) | Send Message
     
    A lot of blood from folks that hedged their portfolio with VXX or TVIX..
    24 Jan 2013, 11:17 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1144) | Send Message
     
    agreed. all that "smart money" getting killed by the lure of this siren.

     

    Look at TBT, it's been the widowmaker for years and this is the year I am finally tempted to heed its siren call as well :)

     

    Will I be next?
    24 Jan 2013, 11:23 AM Reply Like
  • Jon Peter
    , contributor
    Comments (807) | Send Message
     
    You could be conservative and use the UN-leveraged TBF.
    25 Jan 2013, 08:48 AM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    They generally throw-in the towel at the extremes
    24 Jan 2013, 11:25 AM Reply Like
  • The_Hammer
    , contributor
    Comments (4057) | Send Message
     
    complacency growing and sentiment is getting very bullish but we do have a crackpot running the fed so unchartered territory.
    24 Jan 2013, 12:02 PM Reply Like
  • ChrisGriffith
    , contributor
    Comments (104) | Send Message
     
    While i'm not long volatility, how many times has someone come out and say we're in a new age of prosperity and growth, only for it to come crashing down weeks or months later?
    24 Jan 2013, 12:06 PM Reply Like
  • Ted Bear
    , contributor
    Comments (607) | Send Message
     
    The background doesn't matter until it matters.

     

    However painful it is to be mindful of it when investing in the stock market, the facts still remain that our government has left the building with nearly $17 trillion in debts.

     

    That bill has to be reconciled at some point. Just saying it no longer matters doesn't make it go away.

     

    It WILL matter at some point.
    24 Jan 2013, 12:09 PM Reply Like
  • ChrisGriffith
    , contributor
    Comments (104) | Send Message
     
    This is best summed up by Milton Friedman (3 days prior to the stock market crash in 1929): " stocks have reached what looks like a permanently high plateau."
    24 Jan 2013, 01:04 PM Reply Like
  • Freedoms Truth
    , contributor
    Comments (866) | Send Message
     
    "This is best summed up by Milton Friedman (3 days prior to the stock market crash in 1929): " stocks have reached what looks like a permanently high plateau." "

     

    Milton Friedman was a young whippersnapper at that time. He never said that. That infamous quote came from the great Irving Fisher, a great economist but ended up too bullish too late - a reminder that that stock market is the 'great humiliator'. I learned that phrase from another great, Ken Fisher. Related! So he should know!
    24 Jan 2013, 11:15 PM Reply Like
  • ChrisGriffith
    , contributor
    Comments (104) | Send Message
     
    My mistake. I knew the quote but didn't know who said it, so I googled it and Milton Friedman came up. I thought that was odd
    25 Jan 2013, 08:55 AM Reply Like
  • 101charley
    , contributor
    Comment (1) | Send Message
     
    Ted Bear you are dead on Correct. This administration is bankrupting the nation. Another credit downgrade is likely to come soon and a default of some nature on US bonds cannot be far away. Raging inflation in the next few years also is getting more likely everyday.
    24 Jan 2013, 03:07 PM Reply Like
  • Managing
    , contributor
    Comments (275) | Send Message
     
    the VXX product is a dog and has no useful purpose. Trading VIX options directly seems much more appropriate.

     

    The cans have been kicked in Europe and probably this spring in the US. Does anyone believe however that our lawmakers will pass a spending cuts program that ANYONE will take comfort in?
    24 Jan 2013, 04:33 PM Reply Like
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