Picture source here.
Courtesy of Joshua M Brown
The market is not sticking with the 2013 playbook. We have gap-down opens and the Vix is back in the mix. Market participants are actually paying attention to overseas news – and not just the good news, the bad news too.
In 2013, good news was good news, bad news was good news and no news was good news. This was an infuriating environment for anyone who wasn’t 100% long US equities.
Things aren’t playing out that way anymore.
Volatility is back after its artificial Fed-induced suppression for most of the last two years.
This is a good thing. Unless you enjoy adding to your 401(k) and other investment accounts only at record highs. I had a markets reporter ask me “If volatility is coming back this year, should investors hide out in cash until it’s over?” No wonder the American public is investment-illiterate. Look at the shit they’re reading.