My personal thoughts and links to interesting articles centered around emerging trends in finance and technology from both a venture capital and public market perspective.
Finance, Technology and Investing
Extremely quiet on the volatility front as the United States is in full on recovery mode… Contango continues
3:51 PM The VIX (VXX -6.7%) continues to slump, suggesting an ominous complacency in the face of struggling stocks. The VIX, however, measures the implied volatility of one-month S&P options, but tells nothing about forward volatility, which - as recently as late summer - was at a higher level than the day after Lehman went bankrupt.
for more charts that tell some of the story, go here: http://www.businessinsider.com/what-the-collapse-in-interest-means-2012-5?
(Source: Business Insider)
Very long letter, goes over each position.
“Then there’s VIX. VIX, rather than being any measurement of real volatility, is a measurement of the expected volatility in the S&P 500, as implied by a strip of S&P 500 options.
That VIX isn’t a particularly useful measure of volatility is something we’ve ranted about before. But that’s actually a bit beside the point…
…the answer, it turns out, is that any rational investor would look at the VIX futures market and run away screaming.”
