Thursday, May 3, 2012

Guest Columnist at The Striking Price for Barron’s: Why I Am Short Fear

Today I am a guest columnist for The Striking Price on behalf of Steven Sears at Barron’s, weighing in with Be Greedy While Others Are Fearful.

The Barron’s article is a quick summary of some of the reasons I am short fear. Essentially, I am short fear not because I have a Panglossian view of the world and am unconcerned about events in Spain, China, Iran and other global flash points, but rather because fear is almost always overpriced – and by a wide margin. Between the volatility risk premium and persistent negative roll yield, long VIX strategies generally face an uphill battle.

I spell out the details of my thinking in the Barron’s article, but readers can find some similar themes in the links below.

Related posts:

A full list of my Barron’s contributions:

[source(s): StockCharts.com]

Disclosure(s): short VXX at time of writing

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