Does anyone follow or buy into the volatility index (vix.) I don't own it because it doesn't offer any long term growth prospects at all, but I like to check it. Lot's of reports about the next big recession coming, but volatility isn't particularity high.
It seems to only be a "fear" indicator from what I can tell - like it seems to only really track downside volatility, while ignoring upside volatility.
I didn't think you could own the VIX directly (although I'm guessing that you may be referring to the ETFs that are associated with it - though even those don't move in a linear fashion to the VIX). Historically, it's been a good gauge for fear and greed, but in the period of heavy QE and sharp moves in the market, it wasn't acting as reliably as it had done in the past. I think it's still worth keeping an eye on along with other gauges that give you an idea of market sentiment, e.g. put-call ratio.
Oh I didn't even realize that you couldn't just buy it. I just have heard it being talked about a few times, I only looked into it's #'s, never looked into buying it since I didn't plan on it. But now that I have looked there are a number of ways to get exposure too it. I just like to watch it.
I never heard of that. My guess is this is why negotiations were opened with Iran to try to stave off an impending recession. Feds are hoping cheap gas prices will encourage people to keep spending. I think that had at least something to do with the decision. Let's hope they don't use the bomb against us in their "gratitude."
