Dear Members,
11 Oct 2017
It is not that investors are all in as the extreme bets on short volatility and long equities simultaneously suggest but that everyone betting on it is doing so knowingly. Especially in case of India everyone knows the problems with the economy and everyone is well read about all and everything. They participate in the markets because they feel they have to. This is herding.
As a follow up to the post over the weekend here is a summary. Traders are betting the highest on record bearish volatility based on the net positions on VIX futures