Steve Sosnick, Interactive Brokers’ chief strategist, discusses profit taking, IPOs, and how the market is quite speculative these days.
Aiming for high returns is the whole point of investing of course.
But it’s crucial to manage your risk in a market like this.
Photo Credit: Pictures of Money via Flickr Creative Commons
Currently, short-term VIX futures are experiencing rolling costs (first to second month futures) greater than 10%, which is working in favor of my short iPath S&P 500 VIX short-term fund (VXX) position.
A divided government is the ultimate best case for the equity markets
Bonds are at biggest risk from higher interest rates, not stocks.
Mortgage REITs don’t track the stock market. They’re leveraged bond funds.
