VIX is reaching multi month lows today. Investors hate paying for protection. We had a conversation with a fund manager that has been in the business for long and he explained to us;

“Protection and hedges only cost me money, I am sick of paying for protection. Market never goes down”.

The guy is not alone and holds a NOT unique view on this topic.

Below chart shows the VIX versus the net non-commercial positioning. People have all piled into short VIX strategies.

Don´t be surprised to see these chart pop higher quicker than most can imagine.

Source, chart by Bloomberg