8 Reasons Why One Hedge Fund Is Keeping A Long VIX Position On

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies, Market Commentary, Politics

With stocks soaring, now that the “Brainard” risk factor has been fully unwound after the Fed governor’s surprisingly dovish speech which has essentially killed any probability of a September rate hike and unleashing today’s “”Violent Rally In Risk” Today” as predicted earlier, one would expect that there is only smooth sailing not only until the September 21 FOMC meeting, leaving only the post-election December 13-14 Fed meeting potentially in play.
Still, at least according to one advisor, GS Banque’s Loic Schmid, it is prudent to keep some volatility protection on after the recent risk-off episode. As a reminder, in mid-July Schmid suggested buying the VIX, a trade that has been profitable ahead of the Friday surge…

This post was published at Zero Hedge on Sep 12, 2016.