Know Your Risk Podcast The Vix Has Our Attention
Oct 3, 2025
Zach dives into the current market dynamics, spotlighting the VIX and its implications for investors. He discusses the U.S. auto industry's potential struggles against foreign competition. The conversation shifts to AI, analyzing its status as both a bubble and an essential evolution. He emphasizes the importance of careful investment strategies, especially in value stocks, and provides insights on navigating the challenges of AI monetization. Balance and long-term discipline in investing are highlighted as crucial for sustained success.
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Beware VIX Hedging Mechanics
- Do not use VIX ETFs or options unless you thoroughly understand roll mechanics and theta decay.
- Expect those funds to lose value over time if held long-term due to monthly futures roll losses.
Learn Hedging With Cash First
- Start hedging with cash before using complex instruments like VIX or options to learn risk management.
- Use dollar ETFs or cash as a simpler hedge to gain experience without heavy decay or losses.
VIX As Early Yellow Flag
- The VIX behaving oddly is a top indicator that market turbulence could be coming.
- A VIX that fails to spike during market moves signals growing fragility, not comfort.
