Take Stock of Your Options
I just saw a graphic on TV that said the Dow Jones Industrial Average has posted triple-digit moves in 18 of the last 23 sessions. Turning to the CBOE's volatility indices, I see the Volatility Index (VIX) was up a couple of points to 36 and the Nasdaq-100 Volatility Index (VXN) was up above 34 this morning.
Given the wide range of potential problems and outcomes I mentioned in Thursday's column, I do not think volatility is going to compress anytime soon. It is a great market for traders, according to my wild-eyed compatriots who think long term means the 4 p.m. market close, but it is a bit more frustrating for long-term investors. It can be difficult to watch the value of your holdings gyrate wildly based on events in Europe or China, or the decisions of black-box traders that dominate the market....553 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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