Market Carnage

Heightened volatility creates opportunities

Last week, the VIX crossed 20%, but retreated. This week has been totally different with the VIX not contracting much on intraday rallies.

As we said in last weekend’s webinar, this market environment has 2018 written all over it given the macro uncertainty, tariff talk, and a rotation into low-volatility stocks. On the latter, that seems to be fading, potentially indicating the recent dip has reached a new phase of becoming more broad-based.

What does it mean for our portfolio, which was up 2.16% since inception based on yesterday’s closing prices? By the way, that’s another slight increase from Friday’s bi-weekly update (versus the market being down another >1% since and >2.7% based on today’s price action).

Our main message remains the same: with higher volatility comes opportunity if you don’t want to “bet” too directionally. In other words, we could be stuck in this highly volatile environment for weeks and months.