Don’t know if anyone else was watching the stock market meltdown in realtime today but as the indices were plunging down the face of what looked a bit like an upside down exponential curve driven by HFT algorithms gone wild and the financial news sites started going down under the traffic I couldn’t help thinking that this is probably what the singularity would look like to a human. Being invested in VXX made it particularly compelling viewing.
To save everyone the googling: VXX is an exchange traded fund (basically a stock) whose value tracks the level of the VIX index. The VIX index is a measure of the volatility of the markets, with higher values indicating higher volatility (volatility here generally implying lost market value). VIX stands at about 33 now, and was around 80 during the ’08 crisis.
Don’t know if anyone else was watching the stock market meltdown in realtime today but as the indices were plunging down the face of what looked a bit like an upside down exponential curve driven by HFT algorithms gone wild and the financial news sites started going down under the traffic I couldn’t help thinking that this is probably what the singularity would look like to a human. Being invested in VXX made it particularly compelling viewing.
To save everyone the googling: VXX is an exchange traded fund (basically a stock) whose value tracks the level of the VIX index. The VIX index is a measure of the volatility of the markets, with higher values indicating higher volatility (volatility here generally implying lost market value). VIX stands at about 33 now, and was around 80 during the ’08 crisis.
Does that mean VXX stock becomes more expensive/valuable when the volatility grows, or when it goes down?
VXX becomes more expensive when volatility grows.
Thanks, I meant to include a link to that. I’ll edit it.