Do you know what the VIX index is? Should you?

A google search will readily let you know what the VIX index is and what it measures in the financial markets. Taken from the CBOE website: "The CBOE Volatility Index^® (VIX^®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment and market volatility."


Now many financial Gurus have long stated the phrase that "if the VIX is high it is time to buy and if the VIX is low that it is time to go." 


An interesting correlation is that as we reach the top of the valuation in the market the VIX is very low and when the market bottoms out the VIX is high. The Dow and S&P are at one of its highest points recently and the VIX is at a 57 month low. The question remains, is it time to get out of the market? Or do we become complacent and see if it is going to go higher.


If you have been advised properly since 2008 your portfolio should be at about where you were before the crash. Maybe it is time to take some dollars off the table.




Now is the time to act.

Are you at or near retirement? Do you think that it would be a good time to investigate protecting yourself from loss? If you want to discuss your options give me a call at 610-695-8748 and I can show you some of your options. or email me at roy@yourwealthadvocate.com.