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Risk-off is back. Beware....

vlemon

Published: 13 Oct 2023 โ€บ Updated: 13 Oct 2023Risk-off is back. Beware....

Risk-off is back. Beware....

Hi HODLers, Hiveans and Lions,

Quick post to share that risk-off is back and shit is about to hit the fan. I have been feeling physically sick and wanted to puke the entire morning...

The geopolotical tensions are on the rise and this weekend will be decisive. Markets corrected a little bit but the most impressive was the jump in the VIX often called the Fear Index. It is a measure of realized and implied volatility a.k.a risk.

It has pumped 15% today before the weekend as investors are worried things will get out hand by Monday. Brokers have derisked their portfolios and bought VIX to hedge against risk.

There has been only 3 instances where:

  • VIX up> 15%
  • Gold up> 3%
  • Crude Oil up>5%

It happened on:

  • 9/17/01
  • 9/17/08
  • Today

I fear this is not the end but just the beginning...

Stay safe,

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