Complacent Market In For Some Turbulence?

The market has been getting complacent as of late despite all the uncertainties and disappointing growth around the world. My favorite indication of this is the VIX, which is sitting at near all time lows of around 12. Stocks are also at all time highs in the S&P which is another indication of euphoria.

Then, yesterday's comments from Trump and less dovish statements from the Fed speakers probably jolted some of the market participants back to reality.

Here are some key points from yesterday:

• Trade deal with China is still far away
• New tariffs on China may still be imposed if talks don't progress
• Trump still believes that tariffs are helping the US economy. If you look at the stock market, he's probably right.
• The Fed isn't necessarily going to cut rates at the next meeting as everyone expects.

This is a reality check for the market. Nothing much has changed from April/May when stocks started to sell-off and it just shows how quickly sentiment can change. Personally, i'm buying again if the VIX hits 20 again.