Volatility isn’t going away. The average daily closing value of the CBOE’s Volatility Index has nearly doubled since the mid-2000s, and so far in 2011 the S&P 500 has swung more than one percent on 75 trading days. Turn volatility into profits. One way is to hedge your portfolio by taking a five percent stake in a VIX futures fund. Another way is to use wild, seemingly irrational moves as buying opportunities.
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