Why the VIX Keeps Investors on Edge | WSJ
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- Опубликовано: 5 июн 2019
- Since the financial crisis, the Cboe Volatility Index - also known as the VIX - has been considered an early warning signal for market distress. But how does it work? WSJ explains. Photo Composite: Tom McCarten for The Wall Street Journal.
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There are loads of RUclips videos explaining this topic but this is hands down the best: engaging, clear and logical. Thanks!
Wall Street in a nutshell:
_Can I bet on that?_
Wall Street: Sure can do!
r/wallstreetbets
Tendies bb
@@jminkvihubyb who cares if the market price rallies or falls? Or hits recession?
Learn to trade the markets...not by asset ownership (buying selling) but by betting on asset price (spread betting).
You will always make money, high volatility, low volatility, recession, no recession, market goes up, market goes down.
You moan because you can't be bothered to learn a different skill. Don't fear what you don't understand !!
Wall Street: Hmm let me make an index to better track performance of indexes and stock so I can make better decisions
Also Wall Street: I'm betting on that index now
You joke...but structured products already exist
direct investing vs Indirect investing (structured products).
Wow, this is better than my 2 hour lecture which taught me nearly nothing.
Zero-sum games always favor the fee collectors. Me, I am holding out for the 3rd order derivative above the VIX.
true.
The guys who invented how the options are priced (and therefore how volatility is measured) I believe they won #NobelPrize in economics. Later, they created an explosive hedge fund called #LTCM.. Which almost broke the back of the market in 1997 -1998. They were being highly leveraged and exposed themselves to BIG risks. And once the volatility increased during the Asian and Russian economic crisis in the late 1990s, they were badly exposed. They could have brought down several big banks that is why the FED interfered to unwind them. Look them up on #Wikipedia #LTCM. I believe a book was written about them. I wish a movie could be done about them.
The market never learned from what happened then.
the video just kind of ended. people are betting on the vix now... so what happen to the rest of the story?
We're living it.
people have been betting on the vix for ages
@@richardgayler4126 video is really just saying VIX was tracking market volatility now people are also using it to predict the big market crash that's coming.
No real change there then....they haven't got a clue about market cycle
@@borntodoit8744 nah I was pointing out that "people are betting on the vix now..." is not anything new and that you can't draw a conclusion from that piece of info because it's useless.
Is there an option to bet on a bet on a bet of a bet? ‘Cuz, you know, diversification.
Amazing!😇
More videos like these please.
They should have given this reporter a set of Crayola Crayons to do this report. The price of the vix is reactive to price moves... it predicts nothing.
Anyone know how much those 'small premiums' might cost? Haven't done my research. My guess is %15 stock share value based on 100-85 example.
How WS works: Selling papers out of thin air("securities") to people who want to bet(gamble).
"When the VIX is high, buy"
Too scary for me, I'll stick with divvys.💰💰💰
Very short term indicator
Really interesting, too bad I didn't get it
If people are betting on the VIX (and I agree they are betting) is it really even investing? What if we were talking about the NFL? We might say the owners have invested in the team, but would web also say the gamblers betting on the team were investors? I think the distinction lies in whether profit and loss is made based on the profitablity of a company or on the bets of other gamblers. Most of your retirement fund relies on accumulating money from other gamblers to operate.
Gibts hier auf FB nur noch engl. und franz. Beiträge?
The entire system is a casino hall
I'm going to bet on the people putting bets on the VIX
Short the VIX
I like this guy
Short the vix
Yolo short vix 24h after every econ summit with Trump involved.
Move size, get chicken.
Spotted the r/WallStreetBets user
Never heard of that.
what will happen if for every burger sold by mcdonalds, customers own a cent worth of sold?
It's all gambling aka betting, speculating!
Hi good if u provides english subtitles it will be more helpful
Ramp 330 4eva
SHORT THE VIX
Investors...?
once again first
Active-gamer-pc 125 get a llife, loser
where are the documents to show how this process "actually" works. Still playing the the peoples minds i see.
Why it quotation marks around actually?🤔
@@ChrisGilliamOffGrid think about it.. You really think they can condense how this process actually works in terms of written laws and policies they have to abide by in order to conduct their business, and how much money is going into these types of processes. etc. they leave out more information than they give. that was the point.
@@thepooaprinciple5144 It's a RUclips video...
@@ChrisGilliamOffGrid Just as a news article is a news article. I think you are being a little naive as to understand how media works, in any form. It's information. A seed..that could lead to masses becoming confused and believing what their eyes have just told them. I think you are also unaware of how media & the internet is shaping how people think in the 21st century.
@@ChrisGilliamOffGrid That is not to say that the video was intentionally uploaded to deceive, but by them not giving clarity to the topic in discussion raises more uncertainty, than understanding. Make sense. So if you can not present clarity in your viewers minds the subject you are discussing then do not upload the video, because from that acknowledgement it indicates that you yourself "the one who organized the video" do not know for yourself the topic you are trying to discuss. Making yourself become a poser rather than an expert. You see now, the media from today is not at all the media from yesterday. Humans are changing....we must adapt once more.
Who are you, why are you in my recommended, leave
Lol u dumb
Great, comment Entio9702! Thank you for sharing your thoughts with the world.