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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: sammaster who wrote (178784)7/10/2002 3:24:05 PM
From: Tommaso  Read Replies (1) of 436258
 
Some time back I made a number of comparison charts of the VIX with various indices and could see no predictive correlation. It's true that it has gone up when there were big declines and excitement and fear, and when these subsided, the markets would recover. But the presumption in using the VIX to change allocations is that the markets will ALWAYS recover relatively promptly after a big decline. To bet on that could be a disaster.

In any case, I find that the feelings I get by reading a lot of well informed posts on SI work much better. Also, things like P/Es, dividend yields, book value, and so forth show that stock prices are still far outside average parameters.
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