Mr. Angry is reading Robert Harris’s new book ‘The Fear Index’. It is about Dr. Alex Hoffman, a visionary scientist, whose computer software turns everything it touches into gold. It tracks human emotions enabling it to predict movements in financial markets. Chaos follows.
The Fear Index is actually the Chicago Board Options Exchange Volatility Index which is known as ‘Vix’. It measures the cost of options that are purchased to insure against equity losses. A high level shows how worried professional punters are about share price falls. In the last week the Vix hit its highest levels since 2008.
Mr. Angry dismisses this concept as sensationalism.
“Prices rises, prices fall, who needs an index?” he asked.
“I don’t do fear” Mr. Angry continued. “I make thoughtful investment decisions like buying premium savings bonds.”