I have established a 4% position in the Barclays Bank PLC IPath S&P 500 VIX (Ticker VXX), a truly horrible ETF. I believe there are some fundamental problem with this ETF of which investors should be wary, including value decay.
The VXX position is short-term (< 1 month) as I wait to see if the markets will pull in due to European debt concerns, or changing trade policies with Asia. I am also pondering earnings season and its impact on the markets, which I'm leaning towards bullish given relatively low valuations.
I continue to maintain my thesis that the stock market is ready for a bullish inflation-driven run in the next 1-3 months. I also maintain that fundamentals will remain mixed, at best, for the foreseeable future.
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