U.S. VIX equity volatility is well off earlier highs
U.S. VIX equity volatility is well off earlier highs of 12.63, but still up 6.2% near 11.64 compared to session lows of 11.49. That session high marked the highest level since early June and put a little more room between the all-time low of 8.84 from July 26th. Yesterday Gundlach of Doubleline said that the S&P 500 would fall at least 3% by year-end and the VIX would double as a result, returning him a 400% gain on a bearish options bet (puts). He said that going long the VIX "is really sort of free money at 9.80." In contrast, his view that yields will shoot higher as well based on the firmer ratio of copper to gold being inflationary appears to be postponed somewhat by the hostile rhetoric on N. Korea, after yields tumbled by as much as 6 bp at the long-end.