Market has No Fear, and the Tech Triplets are Rolling Over
The VIX measurement of volatility keeps making new lows, a pattern that has continued since March 2009 (new lows indicate less and less fear on the part of market participants). The reason is obvious, Bernanke has clearly convinced the markets at each market decline, the one in May 2010, the one in June 2011, and the one in May 2012, that he is willing to do whatever it takes to support market assets. His game is coming to an end, so watch for significant increases in the VIX as an indicator that some major changes are coming to asset trends.
As to the Tech Triplets, an in-house index that we keep of AAPL, GOOG, and AMZN, it and the NASDAQ have in the past week become the leaders in a market decline that is just starting.
And for the growing group of new viewers, take a look if you haven’t already, at our Position Snapshot of 9/30/12 on our Home Page. Our positions are unchanged from the last adjustments on 9/18/12 and performance since then for our portfolio is positive by about 5 percent while the stock market is down a little.