April 07, 2011
– Comments (2) |
RELATED TICKERS: AAPL
This indicator is flashing red, but for investors, it's a case of see no risk, hear no risk.
I believe we're going into a high risk time for a big market down turn. I don't want to sell my well analyzed equities which I hold for the long term so I'm hedging my bets by buying VXX which flies up when the market perceives short term risk.
It won't make up for a lot of losses, but a little insurnce is a good thing...in my book.
Make sure you understand the "roll risk" that VXX is subject to and other aspects of the ETN's structure. VXX is far from being a perfect tracker for the VIX index.