Trump Won't Bring Back The 1980sTrump Won't Bring Back The 1980s

Markets are calm right before the storm, and according to the VIX, the S&P 500 is very calm.

As the chart above depicts, we've seen two full bull cycles and are currently working on the third. The CBOE Volatility Index (VIX) (NYSEARCA: [[VXX]]), depicted in blue, represents the implied volatility of the S&P 500. As you can see, the difference (grey) between the VIX and the S&P 500 (orange) has magnified significantly over the recent years. Given all the recent political and economic turmoil we've faced (and will continue to face), it's odd to see implied volatility near its all-time lows. That's why I think a reversal is in our near future.

This is Not the 1980s

This year has been filled to the brim with both political and economic uncertainty, and yet just recently a last attempt "Trump rally" has been trying to gain momentum. I don't believe the… Read More …