Tuesday, October 16, 2012

Another VIX Head Fake?

As sentiment remains fragileand signs of a real recovery remain uncertain, volatility in global capital markets has remained high.

Over the course of the 65% rally in stocks we have seen a number of different scares, but none has materialized into a sustained downturn. The last five 20% rallies in the VIX have all been followed by a quiet climb higher in the equity markets.

Is it safe to utter the four most dangerous words in investing – “it’s different this time”?

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