Spiking 'Fear Index' Indicates Overflow of Emotion in Market

The spike in the VIX, or so-called fear index, indicates that investors are becoming increasingly cautious about the strength of the long bull market, said Nick Cherney, CIO at VelocityShares. Cherney added that the Federal Reserve's decision to end its quantitative easing program is not a major factor in the rise in volatility. Furthermore, he said leveraged ETFs are also not a significant factor behind the unease in the indexes. Cherney said individual investors can use VelocityShares tail risk ETFs for protection. Finally, Cherney said the cost of hedging will continue to increase.