The Last Cheap Asset Class [iPath S&P 500 VIX Mid-Term Futures ETN]

The bottom line for investors is that in a world of few bargains, volatility does appear to be the one relatively cheap asset classes. And while a continuation of zero interest rates and cash-flush companies will most likely keep volatility below its long-term average for the foreseeable future, it will take a lot of good luck to keep volatility as low as it currently is. This suggests that investors looking to potentially help protect portfolio performance if market volatility suddenly rises in the case of an unexpected correction may want to consider buying volatility.

Sources: BlackRock, Bloomberg

Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock and iShares Chief Global Investment Strategist. He is a regular contributor to The Blog and you can find more of his posts here.

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