Friday, June 11, 2010

Investors Concerned about Increase in Volatility Index




Many investors are concerned about the VIX index for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied volatility of S&P 500 index options.

It is not backed by anything and positions held are merely a prediction of a future.
A high value corresponds to a more volatile market and therefore more costly options, which can be used to defray risk from this volatility by selling options.
Often referred to as the fear index, it represents one measure of the market's expectation of volatility over the next 30 day period.

The other day I was having a beer an Australian multi- millionaire friend of mine.
We were discussing the volatile financial markets and that we both sold most of our investments’ a month ago at the highs and have been standing aside because of the volatility.

We both concluded that the only real safe investment right now Bali Real Estate.

He then went on to tell me that he was just offered 100 % profit for a piece of property he leased in Sanur just two years ago

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