Postcards: Shut Up and Take My Money

Why on earth do they allow some of these companies to go public? So that you'll buy them during an overhyped IPO.

Market Update: Today, we saw a big spike in the VIX. As I noted in Republic Risk this morning, funds are hedging at a tremendous rate against downside risk. The volatility of volatility (the “Vol of the VIX”) has been pressing higher lately. There are plenty of geopolitical risks (war in the Middle East), socio-economic risks (port shutdowns), and now… the risk of bank failures in Japan and elsewhere. We may witness an LTCM moment in Asia as central banks still try to conceal events that transpired in Japan in early August. I assume the central banks will ride to the rescue, but it will be bumpy.

Be cautious and subscribe to Republic Risk.