by Chad Shoop
The Sovereign Investor
“What are we going to do when the market crashes?”
It was one of the first conversations I had while we were in Bermuda for our annual Total Wealth Symposium, but it was far from the last time this topic came up. In fact, there were many more attendees who asked the same exact thing.
When posed this question, I had to give an impromptu response. As a result, most attendees’ eyes glazed over as I dove into market dynamics and current market trends.
That’s not what they wanted to know.
What they were really concerned about wasn’t how I am managing the coming crash within a particular service, but how they, and others, could avoid a crash like we saw in 2008 when it happens again.
Today, I’ll give you the best, and most conservative, way to do so by following one simple indicator: volatility.
Specifically, I’m talking about the CBOE S&P 500 Volatility Index (VIX) — aka the fear index.