‘Every time, it’s messy:’ U.S. again approaching debt ceiling

Looking for the next catalyst for volatility?  July 31st is the next logical date on the calendar, its when the treasury says it will hit its debt limit.  As an observer and market participant, its important to know, even if we expect nothing of it.

‘Every time, it’s messy:’ U.S. again approaching debt ceiling | Reuters

21% Surge Shows Why Investors Love a Complex Product

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”  Peter Lynch.  People are noting that UVXY and VXX are seeing big inflows on this recent rise up.  I’m not surprised, and at this point everyone knows VIX ETNS go down over time, yet people still buy them.  The VIX is loved because it goes up, big, when the market goes down.  Its why I own VIX futures myself.   But I can’t just sit around and watch my hedge evaporate to nothing.

The problem with the strategy is obvious, Contango grinds the position to dust.  VIX is best owned by dynamically.  There needs to be a way to capture the peaks and valleys of volatility.  Yet investors will still poor money in throwing good money after bad.

A 21% Surge Shows Allure of VIX Products as SEC Issues New Fine – Bloomberg