Ep. 437 – Risk-Reward Danger Alert?

The Kapital News
The Kapital News
Ep. 437 - Risk-Reward Danger Alert?

Markets making new highs and yet the volatility index, the VIX, is also moving higher. What might this suggest for markets? Despite the massive rally across the major indexes, the VIX has held relatively firm. But with the VIX moving up with the S&P 500 of which it tracks, might this be a warning of more volatility ahead? With valuations breaking one record after the next on a daily basis, the risk-reward picture is definitely not pointing in favor of adding more risk to one’s portfolio. For example, just yesterday, Apple, Inc.’s market cap was larger than the entirety of the Russell 2000 index! However, if enough people believe that printing presses are panaceas, then this mania may very well last for longer than many think possible. Time will tell.

On another risk-reward note, the Trump Administration is floating a story that a COVID-19 vaccine may very well be available by the end of October to 1 November. Let’s see, what also is around that time-frame? Oh, yes, that’s right, the presidential election. So a process that usually takes years is now going to approve a vaccine within months? Talk about “Operation Warp Speed.” And of course, The Kapital News imagines that there will be massive insider trading on this information as the Administration is going to know in advance what companies are going to be approved. And on top of this, because this is a rush-job, the same pharma companies that are going to print a mint on the back of this news, will also be immune from any potential lawsuit, should their vaccine(s) not prove safe and/or effective. How can they lose? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Gold #Jobs #Bailouts #BananaRepublic #EndTheFed #Silver #Liberty #Revolution #Depression #Recession #USA

Join the discussion...