Marketplace Roundtable #64: Assessing Risk Levels In Equity Markets, With Michael Gettings

Michael Gettings joins the Marketplace Roundtable Podcast to discuss his investing experience as reflected in his The Easy Vix research service.Gettings developed an algorithm that uses the shape of the VIX futures curve, and the rate of change in the curve, to assess the level of risk in equities markets. The algorithm aims to produce warning signals when risk is emerging, rather than after it has already arrived.The last four months the model has been giving a clear buy signal. More recently, however, "the metrics are tapering down" to right above the bullish threshold, says Gettings. "If I were to see much more deterioration, I would probably call a sell, but it hasn't happened yet."Topics Covered2:15 - Investing strategy3:30 - How did you develop your algorithm?9:00 - What do your models tell us about the present day?12:40 - A lesson you've learned over time14:45 - January sell single.. how bad and when will it turn around?16:45 - What scares you about the market?18:45 - Something that gives you confidence21:15 - Leveraged ETFs... more or less risk?25:00 - Portfolio warning signs/stock picks. (GE) (EW)27:30 - Suggestions for risk protectionLearn more about your ad choices. Visit megaphone.fm/adchoices