What Happens When $500 Billion in Risk Parity Funds Hit "Sell" on Stocks?

www.zerohedge.com | 8/10/2017 | Staff
Zorra (Posted by) Level 4
The market riggers are now pulling the pin.

All market rigs end badly. And given the fact that this one has been particularly egregious, the results will be quite ugly.

S - P - Stock - Index - World

You cannot pin the S&P 500, perhaps the single most important stock index in the world, for weeks and expect it to end well. This is particularly true when you’re pinning it using Risk Parity Funds and their “buy/sell” algorithms.

Those same algorithms that have mindlessly bought stocks every time the VIX gets smashed, will mindlessly SELL stocks when the VIX explodes higher.

VIX - Historically - Level - VIX - Stock

And the VIX will be exploding higher. Historically, the average level for the VIX since 1993 has been around 18-20. We’ve been stock at 9-10 for weeks now.

Not anymore. Today’s move could very well be the start of something big. The below chart predicts a...
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