The Barron’s article is a quick summary of some of the reasons I am short fear. Essentially, I am short fear not because I have a Panglossian view of the world and am unconcerned about events in Spain, China, Iran and other global flash points, but rather because fear is almost always overpriced – and by a wide margin. Between the volatility risk premium and persistent negative roll yield, long VIX strategies generally face an uphill battle.
I spell out the details of my thinking in the Barron’s article, but readers can find some similar themes in the links below.
A full list of my Barron’s contributions:
Disclosure(s): short VXX at time of writing