Barron For a Day

• Posted by Adam Warner
• on December 31st, 2009

So with regular writer Steven Sears on assignment in Aspen*, the good people at Barron’s have turned over today’s Striking Price to …..yours truly.

Yes, I penned today’s online column, so come by and leave some comments and maybe they’ll put me on the short list to guest host for Abelson.

IF US MAGAZINE HAD A LIST of “Hot” and “Not” for financial products, the Chicago Board Options Exchange’s Market Volatility Index (VIX), would have certainly made it to the “Hot” side at the end of 2008 thanks to the veritable explosion in overall volatility. The debate was whether we should consider it an asset class unto itself, with the implication being we need to own it in some way to protect our portfolios.

Fast forward to now, the end of 2009, and it’s very much “Not.” I sincerely hope anyone who invested in something VIX-related had it merely as a small hedge.

The VIX has lost roughly half its value in 2008. But the VIX itself is just a statistic. Fortunately (or unfortunately), we can trade it now in many forms. But even when times are better to own volatility, make sure you fully understand that which you invest in.

 

* Steve isn’t actually in Aspen as best I know.

Anyway, there’s more, so click thru.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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