Friday 19 May 2017

What to buy when S&P 500 is correcting? (1)

Did the US indexes started correcting? This is the issue that tortures all investors, after a long-awaited decline in the US market on Wednesday. What is certain is that times of record low volatility may have ended.
The VIX, or the volatility index, is the first suspect to get into the eyes of any investor who wants to insure themselves from a further fall in the indices.
The fear index reached a 23-year minimum in the past week and yesterday saw a significant depreciation of its lowest values. However, as history shows, this may only be the beginning of the indicator's appreciation. It is quite possible to witness a test at the highest levels of the indicator of more than 16 points.
What else can be traded by investors fearing a further fall in the indices. A completely logical answer is - companies with a negative relationship with the market, or with a negative beta.


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