Gold is popular. Always has been. But in this market, gold has been maybe too popular. At some point, there will be deleveraging as hedge funds sell out of their respectably profitable holdings to offset losing (margined?) positions in equities. Volatility? There are a lot of buyers there, too, but absolutely nothing like the amount in gold. For now, I like volatility better as a hedge than gold, and that goes for as long as the market is buried in a desert like treasure unseen.
Financials will be at the heart of the unrest. Even Citigroup uber-bull Dick Bove says the repercussions of looming global bankruptcies will eventually hit domestic financials.
I'm out of VXX, but will trade it in the coming week with relish and precision. Also doing homework on a giant pond of hedge vehicles. Should've done this years ago.
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