Testing The Sacred Cow
Ok, so this week is going to be a test.
Recent history has taught us that every vol. spike is an alpha opportunity. Every dip is a buy. The rapidity with which vol. spikes have "mean reverted" has increased over time...
... and indeed, that's one explanation for elevated vol. of vol. (which, you're reminded, was trending higher relative to the VIX well before last week, when the risk-off mood caused VVIX to hit a post-yuan-deval high):
So, is "this time different"? That is, have we final
HOLY COW.
– Murphy
When I ate cow the “strip” was my favorite.
When I ate Cow, Rib Eye was my favorite. The closest I get to cow now is ground round for spaghetti or cheeseburgers. But (free roam) chickens are not safe around me.
– Murphy
When your economy doesn’t have to account for its debt, or have a viable way to repay that debt – ever – things can only go up. Up – until the Wile E. Coyote market investors discover that it too has long since run past the edge of the fiscal cliff and is now being supported by nothing more than freshly printed currency floating on thin hot air.
Each day I count as one closer to that cliff.
Tangible, real assets bought with fiat funds are my TTID.
Trading on the fiat currency to add quality to my life is my goal.
I have been in this rodeo for the last 37 years.
Time to change direction, and saddle a new ride.
LOL.