That was quick. No time like the present to end “Stupid is as Stupid does…“. Just a hunch on my part, but traders probably noticed the Fed’s shorting volatility and joined them a long time ago. Nice little profit this last year as volatility vanished from the markets as the trade got extremely crowded.
No more it appears. There is a new sheriff in town. Note his 2012 quote under the chart.
In one day, all those remaining in the trade probably lost everything. These funds are shutdown. So expect a return of volatility in the markets without these suppressors.