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VIX fell again today to the lowest level. There is absolutely no FEAR.
Maximum leverage at lowest volatility in decades spells trouble ahead.
http://www.pimco.com/LeftNav/Feature...ember+2006.htm
"...the ability to lever any or all asset returns via increasing leverage is reaching a climax and therefore, that CPDO, corporate credit spreads, and more importantly, sophomoric assumptions of future assets returns in all markets may require some future compromise, as the current masquerade of high asset returns gradually morphs from cream to skim milk."
Maximum leverage at lowest volatility in decades spells trouble ahead.
http://www.pimco.com/LeftNav/Feature...ember+2006.htm
"...the ability to lever any or all asset returns via increasing leverage is reaching a climax and therefore, that CPDO, corporate credit spreads, and more importantly, sophomoric assumptions of future assets returns in all markets may require some future compromise, as the current masquerade of high asset returns gradually morphs from cream to skim milk."