Advertisement
TME on the market setup.
The shock
Friday’s explosion in VIX and VVIX was nothing short of extreme. The price action had all the hallmarks of forced deleveraging, with risk managers hitting the brakes and traders scrambling for tail protection at virtually any price. This was panic hedging, not ordinary volatility buying.
Advertisement
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Advertisement