The world is in turbulence

 

The world is in turbulence. The US is increasingly playing sanctions, military conflicts are occurring in the Middle East, European economy is experiencing general difficulties, and European banks are falling because of corruption and financial scandals. 

 

At such moments, we must not forget to protect our own investments. And the best hedge can be VIX - volatility index. According to Investopedia "the Volatility Index, or VIX, is a real-time market index that represents the market's expectation of 30-day forward-looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors' sentiments. It is also known by other names like "Fear Gauge" or "Fear Index.""

 

At the moment, its value is at the local minimum, which can be a good entry point.

 

Investing directly in VIX is impossible as it is an index. But there are many ETFs on VIX. It is worth to keep in mind that it is impossible to invest in them in the long run, since in the long run the cost is constantly reduced due to the technical features of the underlying asset. VIX index can itself serve as a good indicator of investors' concerns.  

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