For most of last year, the team at FTfm toyed with the idea of putting its pocket money into volatility – sadly no one has yet launched a vehicle with a low enough minimum investment. Even the Stocks That Wiggle website is out of our reach.
But now we can breathe a collective sigh of relief as deriviatives expert Pablo Triana claims on his blog that the most-often used measure of volatility, the Vix, which we would certainly have used as a benchmark, is just a ghost. On the other hand, would that have made it a worse investment over the last year?
Devotees of paranormal investing, feel free to comment.