I saw people on message boards are asking: what is the TED spread?

It is a difference between 3 month treasury yield and 3 month Libor, i.e. it is a measure of panic at the financial markets. Usually it stays constant for many years in a row and newcomer investors don’t even know what it is. It is similar to those realtors that think that home prices never go down – they are just too young to know that they do.

The chart for TED spread is here:

Compare with VIX:

I think whenever the TED spread and VIX are not in sync it makes a great investment opportunity, because sooner or later stocks will follow – for an example take June-July period