The market has been overinflated for several years. Why? Because of several factors:
1. Real estate prices are climbing in absence of real wage growth or employment figures.
2. Stock prices have been climbing in absence of real earnings growth.
3. Bond yields are negative, pushing investors into stocks and real estate because interest rates are in the toilet.
4. Scares in the European markets due to near-bankruptcy of several EU members.
5. Declining markets in China and yuan pricing is making investment there unpalatable.
6. Political instability in the Middle East, widely fluctuating oil prices, and domestic persecution of production are making investments in the energy sector unpalatable to many.

No, this will not end well. The question is not IF the market drops, but WHEN, HOW FAR, and do we take others with us?

I completely get his point about VXX shares outstanding being inversely correlated with VIX while shares outstanding of SPY and QQQ are correlated with their indecies, as investors chase momentum. My guess is that investors perceive VIX and forever bouncing within a limited range while they perceive SPY and QQQ as averaging 7% appreciate and 3% dividends over the long run. But with VIX, what goes up must come down.

He loses me when he goes from here to predicting market fluctuations He says low VXX shares outstanding in Feb indicated VIX would fall and SPY would rise, but my question for him is is VIX really inversely correlated with SPY? The large number of VXX shares outstanding points to a rise in VIX, i.e. more market volatility, but how do we know if the volatility will be positive or negative moves?

If we accept he's right that VIX will rise, doesn't that mean investors should initiate long straddle/strange, i.e. take long positions in both puts and calls? Is the idea he doesn't know when the move will happen and does want to eat the time decay?