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The one prediction I emphasized over and over was that market volatility would be extreme.
We already saw that yesterday with the Dow Jones Industrial Average down 331 points and oil (based on West Texas Intermediate pricing) dipping below $50 for the first time since April 2009.
There are many reasons why volatility will be our constant companion in 2015. And there will be many opportunities to profitably trade volatility – both on the way down and on the way up.
So today, I'm going to start showing you how to profit from volatility across all the asset classes that are going to make or break investors in 2015.
Let's get started ensuring you folks are among the investors who make it…
Market Volatility and the Problem with Manipulation
Extreme volatility is the inescapable by-product of manipulation of free markets. After years of central bank manipulation of interest rates and price discovery, the free-market pricing of assets becomes grossly distorted.
The root of the problem with central bank manipulation is that capital allocation itself becomes distorted as speculators chase assets that central bank policies benefit. And when the world's biggest and most powerful central bank, the U.S. Federal Reserve, openly articulates a policy to lift equity prices in order to make households "feel" more wealthy watching stocks make new highs, you know the fix is in and manipulation itself is a policy prescription.
Of course, there's a problem with central bank manipulation. A really, really big problem.
Central banks have very limited tools. The blunt instruments by which they manipulate interest rates don't have any effect on markets, regardless of asset classes, once markets take it upon themselves to do whatever they do.
In other words, central banks have no way of stopping market panics, corrections, or outright collapses.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.