Last week the VIX closed at 34.73.
What you ALSO saw last week was that everybody was a loser.
Just look at the sector scoreboard.
No matter what Quad we’re in there are things that an investor can ostensibly buy. But that doesn’t mean you buy it at every level of market volatility.
We’ve talked about this a lot.
For those of you that are new subscribers, when the VIX races to bullish Trade and Trend (which means it’s above 26 for the trend and above 31 and climbing) most things become uninvestible.
That’s what really happened last week. It was just a broad-based smackdown. Just look at the factor exposures.
I called these out in the Early Look. This was a bloodbath!
If you look at the 6 month trending returns on a lot of things like High Beta, High Leverage, or anything that is Small Cap, Slow Growth, it has been a certified train wreck.
You’ve probably lost 25-36% of your money over a 6-month period if you were positioned that way.
We don’t want you to do that.
What we do at Hedgeye is different and looking at the market through the lenses of volatility is certainly one big part of that.