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Poor Chicken Little …

Posted by kdadmin on June 28th, 2013.

Poor Chicken Little …

The VXX (an ETF that measures volatility in the S&P futures market) cratered this week after everyone realized that the sky wasn’t actually falling. In the attached chart, the VXX is the red line, the SPY (ETF of the S&P 500) is the blue shaded area. The HYB (an ETF comprised of high yield bonds) is the brown line. (All data courtesy of

Chicken Little

It looks like Chicken Little (VXX) and his friends (doomsdayers) found their way into the Fox’s Lair, doesn’t it?

Since last week’s mania, the SPY is up almost 2%, the HYB is up 3%, and the VXX is down over 10%. More importantly, on average your portfolios are up by about 1% for a nice recovery.

If you’d like to talk about this in more detail, or would like me to talk to one of your friends about this, please feel free to contact me.

Have a wonderful weekend!


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