Clinton Win Gives VIX Plenty of Room to Fall: Curnutt

The video discusses the potential outcomes of the U.S. election, focusing on Clinton's advantage in the Electoral College and the implications for market volatility. It explores the VIX curve, backwardation, and hedging strategies around elections, drawing parallels to Brexit. The discussion highlights the importance of understanding economic fundamentals, such as low growth and inflation, and the necessity of investing in stocks despite market uncertainties.

What is the expected impact on the VIX if Clinton wins the election?

• The VIX is expected to fall due to reduced uncertainty.

• The VIX is expected to rise significantly.

• The VIX will remain unchanged.

• The VIX will become irrelevant.

What does backwardation in the VIX curve indicate?

• Higher short-term implied volatility than long-term.

• Increased long-term market stability.

• A stable market environment.

• A decrease in market uncertainty.

Why are investors buying short-term hedges in the VIX?

• To capitalize on a stable market.

• To increase their long-term investments.

• To prepare for potential market disruptions.

• To avoid any market changes.

How does the Brexit situation compare to the potential impact of a Trump presidency?

• Brexit had no impact on market volatility.

• Both situations involve significant market uncertainty.

• Brexit was less impactful than a Trump presidency.

• A Trump presidency would have no market impact.

What is the expected market behavior post-election, regardless of the winner?

• A prolonged period of high volatility.

• A return to a low growth, stock-friendly environment.

• A complete market collapse.

• An immediate economic boom.