I just spoke to a few people who are closer to the market in the last few days and the feeling that I get is that the market is getting cloudier each day. VIX index is near May 2008 low and this implies that there is certain level of complacency in the market. However, it does not mean that market will be going bear any time soon. To me, it simply means that it is getting harder to see the market direction beyond a couple of weeks.
While we are seeing more positive numbers coming out from our economy as well as those from the G8 (or G20 now), we still have potential problem in many areas notably sovereign debts. We may also have issue with Euro because of the problems in the European region. Then, there is problem with US ever growing debt, and the Treasury bonds and etc, etc and etc.
What does this mean? In short, it means we will see more volatility. We always have this Chinese saying "Opportunity comes with crisis". In times like this, there are potential in other areas such as VIX index, etc, etc. Or, maybe, be a crouching tiger and strike at the right time during these volatile times. There is never lacking of opportunities - just make sure you have enough "bullets" when opportunity comes.
Disclaimer: The content in this blog contains purely my personal opinion and it is in no way a substitute for professional financial advice. You should seek advice from a professional financial advisor with any question regarding your financial matters.
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