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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (28185)	3/8/2005 10:52:48 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 110194

Faber's charts are interesting, but I urge caution using implied volatility as a market signal. Historically it is not a reliable indicator of a top. That chart shows low implied volatility in '94 and I was one of the few bulls around. I'm not buying any puts or shorting until the story changes in some fundamental way. Otherwise you end up frequently just fighting the tape. Good luck to you. I'll be rooting for your trade.