An interesting trade

I am just about bored by the property market in Sydney. Not a lot of stocks out there. And owners are still expecting good prices for their properties. Just so boring.....

One suspects the stock market is far more interesting right now. The big bet is will the world recover next year ? Basically, I suspect no one has a clue.

One interesting trade idea is to go long volatility in USA. The VIX index has come down from the high. Think it was 60-70 at its peak and has since declined to around 25-30. For a long time before the current mess, volatility was hovering around 20 for quite some time.

I suspect going long the VIX index is not such a silly idea. Or maybe think about ETF like VXX. If you tell me the world is the same as 5 years ago, I suspect you are not going to be TOO right in the future. The world is on the cusp of a lot of changes (inflation or deflation, the start of the secular demise of USA/USD, is the miracle of China/Australia a mirage etc etc...). I don't know anyone who will get all these changes right. But what I know is a lot of people are going to be wrong at some point on one of these big upcoming changes. A little protection is not such a bad idea.