Navigating The Volatility – Jon Najarian Talks With Alpha Trader

This week’s Alpha Trader podcast features hosts Aaron Task and Stephen Alpher talking about the markets and more with Market Rebellion co-founder, and longtime CNBC contributor Jon Najarian.

Do you even remember the fight over oil in March between Saudi Arabia and Russia that helped send crude prices into negative territory? In any other year, it may have been the top markets-related and geopolitical news story, but in 2020 it’s just another headline.

The point of this, says Najarian, is not to rehash that story, but – on a day when the Dow was down nearly 1K points (at the time of the interview on Monday) – to remember not to get too caught up in the day-to-day action.

Instead, Najarian – expecting the VIX (BATS:VXX) to be range-bound between 25 and 35 – is likely to be buying stocks and selling options when the VIX is near the top of that range, and selling stock and buying options when the VIX is near the bottom.

Turning to the election, Najarian has a bit of a contrarian take, and expects volatility to go dramatically lower following November 3. Why? Unlike many, he’s not expecting the vote count for the presidency to take very long. We should know relatively quickly who wins the White House.

Moving on to alternative assets, Najarian is not in the camp that believes gold (XAUUSD:CUR) and Bitcoin (BTC-USD) are too “financialized” to be safe havens anymore. Yes, they plunged alongside the market in February and March, but look over a longer time frame. Both have substantially outperformed during 2020 – gold up 30%, Bitcoin up 50%, and the S&P 500 ahead just 4%. Putting his money where his mouth is, Najarian has 7%-8% of his net worth in cryptocurrencies, and about another 5% in gold and silver (XAGUSD:CUR).

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