If you refer to one of our previous write up on VIX, you find that we urge investors to buy when VIX is high! The article I’m talking about is here.
Still similar in plan, VIX is a good measure knowing that people are actually buying when the market dips. Furthermore, the current market scare comes from Trump playing fire with North Korea’s provocations. The severity is unknown and that is the reason why markets see it as a threat.
Markets do not like unknowns and the retracement opens up opportunity. Of course if a war break loose then markets would likely go sharp south first before heading up slowly just like in Operation Iraqi Liberation.
But for now, our bets are on everything returning to normal. That is the reason for a buy call on blue chips if your are the conservative type.
Strike the good small caps if you are the brave ones!