By Justin Brill

Saturday, April 15, 2017

After months of complacency, volatility is moving higher again...

As you can see in the chart below, the stock market's "fear gauge" – the Volatility Index ("VIX") – has now jumped back above 15 for the first time since November's presidential election...

This move has coincided with growing doubts about the "Trump Trade," as well as rising geopolitical tensions...

This week, the Trump administration accused Russia of colluding with Syria over a suspected chemical-weapon attack. It also ordered the use of the "mother of all bombs" – America's most powerful non-nuclear bomb – on Islamic State targets in Afghanistan.

And the White House sent what President Trump himself called an "armada" to the Korean Peninsula, promising to take "unilateral action" to deal with North Korean threats if necessary.

Of course, we have no crystal ball...

We can't say for certain if fear is finally returning to the market. And we don't know if these events will lead to the first significant correction in stocks in more than a year.

But we do know that it's only a matter of time before volatility moves much higher again. As we wrote in the February 1 Digest, just days after the VIX closed below 11 for the first time in years...

Investors haven't been this complacent in nearly 10 years, since early 2007...

As you can see in the chart above, if there's one certainty in the markets it's this: Periods of market calm and complacency (when the VIX falls into the teens or lower) are always followed by periods of volatility and fear (when it leaps past 20).

So-called "safe haven" assets have also been moving higher...

The yield on benchmark 10-year U.S. Treasurys – which have long been considered a safe haven, as the least risky sovereign debt in the world – has now fallen below 2.3% for the first time since December. (Remember, bond yields trade inversely to bond prices... Yields fall as prices rise.)

Gold and silver have been moving higher, too. Gold rose to a new five-month high of $1,288 per ounce this week, while silver just hit its own five-month high at $18.51 per ounce.

Now, a topic that has nothing to do with the investment world...

Porter has spent several years and more than $2 million creating his world-class shaving razor, the OneBlade. Here's Porter, on the idea that started it all...

When I turned 40 (four years ago) I decided that I wanted to start a new business. I wanted to build a "thing" – a great product. I wanted to build something that could last forever. I wanted to build something that my children could point to and say: "My Dad made that, and it's the best in the world." (My young sons still don't really understand what I do at Stansberry Research.)

I've always admired Rolex and Ferrari. Long before I could afford to own either of these companies' products, I was deeply impressed by their passion. It was the incredible effort they've expended to build watches and cars that are objectively better than any other in the world.

So right after I turned 40, with that in mind, I decided to build a razor.

As Porter explained, ever since he started shaving in the 1980s, he had never been happy with any shaving product. He always suffered from razor burn and ingrown hairs after using cartridge razors. He continues...

By my late 30s, I was only shaving once a week – and only by going to a barber to get a straight-razor shave. That was the only solution that worked for me... And that time-honored ritual was the idea that launched OneBlade.

Like many luxury brands, I wanted to build a brand that would be valued not because of its marketing... but because of its technical capabilities and reputation for innovation. Several years and more than $2 million later, I firmly believe we have produced the best razor in the world.

Porter isn't alone in this opinion. In addition to receiving positive coverage from Fast Company magazine, Business Insider, and a host of other news outlets, his OneBlade razor has amassed an impressive collection of accolades.

Meanwhile, hundreds of Stansberry Research subscribers have written in over the years telling us they agree, like Terry G...

I consider the best investment I've made in the last 90 days to be the OneBlade. I've been looking for a decent shave my entire adult life. Finally, at 54, I found it. The OneBlade gives me a close, comfortable shave. Even in the tough areas, like where the chin turns under and becomes neck. I've always had a problem cutting myself there. The OneBlade just floats right over that area, taking all the hair with it.

Sweet! I've thrown away my styptic pencil. My last desperate attempt to buy a decent shave was a Norelco triple head electric shaver. $275. What a supreme waste of money. I think I'll short Norelco to get my $275 back.

And Mike C., who told us...

The real reason I'm writing in tonight... It's OneBlade! What an awesome shave! If you don't own one you are missing out! I know it sounds expensive at first, but it isn't when you experience the great close shave you get without the irritation of every other razor I've tried. Believe me, in 36 years of shaving I've tried just about – no make that everything in existence to get a comfortable shave! Haven't had one until OneBlade.

I've suffered from razor burn all the time and bumps on my neck at times from shaving and hated it! Now, I actually don't mind shaving, and love the results I get with the OneBlade razor! It delivers the closest shave I've ever had without any of the irritation! Yes, you read that right, no irritation!!! OneBlade is a small price to pay for a great comfortable shave! Now that's a value for $$ in my book! Thanks for a great shave.

But Porter has never shared the whole story of the incredible amount of work that went into researching, designing, and testing the OneBlade razor... until now.

Porter recently sat down on camera with OneBlade CEO Tod Barrett, lead industrial designer Mark Prommel, and "barber to the stars" Craig Whitely.

Even if you're not interested in buying a razor for yourself, it's a fascinating "behind the scenes" look at what Porter and the OneBlade team have accomplished in a short time. This free video is only available for a few days. You can watch it here.

Regards,

Justin Brill

The Stock Market's 'Fear Gauge' Is Rising Again

Recent Articles