Stock market crash

[AwardTour]

So my brother, who is a total whiz in math, algorithms, economics etc, sent me an email today that he got out of the stock market altogether. He sold everything today and will watch the coming carnage unfold from the sidelines. He said that this is the big one, the crash that will lead to a 50-70% evaporation of the US markets in the next 1-2 years, coupled with high unemployment rate and everything that follows. So I am passing it on. Don't say you weren't warned.

If he is a true market whiz and if he believes a bear market is coming then he will be betting on the downside by either going short or buying deep out of the money index option PUTs. There is fear in the market right now but we need to break above January's level on the VIX before I can agree. Right now, after a large down day it goes right back up and recovers the next day. I would be very surprised if there is truly any upcoming "carnage", implied volatility 4 to 6 months out is not signaling that. If your brother turns out to be right then I will be back here kindly asking for his next stock tip.