Markets are wildly volatile this morning. Not only did we see bank failures earlier this week, but now we’re seeing issues at Credit Suisse after the Saudi National Bank said it would not increase its stake in the company.
Worse, according to CNN, “The bank’s shares were trading down nearly 22% in Zurich on Wednesday, and the cost of buying insurance against the risk of a Credit Suisse default hit a new record high, according to S&P Global Market Intelligence. The crash spilled over into other European banking shares, with French and German banks such as BNP Paribas, Societe Generale, Commerzbank and Deutsche Bank falling between 8% and 10%.”
With that, futures are sinking. The VIX is spiking. And there’s a good deal of fear in the markets. And until that subsides, one of the safer bets may be a VIX-based ETF, such as the ProShares VIX Short-Term Futures ETF (VIXY).