‘The Automatic Flow That Poses The Most Immediate Risk Is VIX ETPs’: Goldman Takes On The ‘Doom Loop’

‘The Automatic Flow That Poses The Most Immediate Risk Is VIX ETPs’: Goldman Takes On The ‘Doom Loop’

One of the most important questions for markets going forward is whether the presence of systematic strats and the proliferation of VIX ETPs will ultimately conspire to create what we've variously described as "the doom loop." We've written copious amounts of posts about this dynamic which you can peruse at your leisure here. When stripped of the technicalities, the premise is pretty simple as these things go. Levered and inverse VIX ETPs would be forced to rebalance on a nominally small v
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2 thoughts on “‘The Automatic Flow That Poses The Most Immediate Risk Is VIX ETPs’: Goldman Takes On The ‘Doom Loop’

  1. See, this is the reason why I follow Mr. Heisenberg.

    Now, I just got done eviscerating him, (OK, that is possibly a little strong, but he might have a little tummy-ache), for his previous political post. I wish he would stick to his knitting and create an investment site for articles like this and create a different political rant site for his other clientele. In my humble opinion Mr. Heisenberg, you would do much better separating these two segments because with this business model you are alienating somewhere around half of your subscribers who would otherwise be completely satisfied with your market based analysis.

    It is counter-productive to try to mix the two. But then, I guess one has to ask what your motives are.

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