May 20/14 – Artificially low volatility

Over the past year I have been lucky enough to have avoided the trap of playing for the “inevitable” VIX bounce.

VIX Index over the last 5 years

Although I would like to chalk my foresight up to a terrific market call, the truth is that I have been long volatility in other asset classes. My working thesis is that the next crisis will not look like the las…