Citron Research Founder Andrew Left on Betting Against the VIX and New Long Trades

The VIX Trade and Market Fear

• 💡 Andrew Left, founder of Citron Research, discusses his short position on the VIX, believing market fear was controllable.
• 🎯 He explains that the VIX surged due to Trump's tariff announcements, but he felt the reaction was an overshooting of a controllable situation, unlike the fear during the COVID-19 pandemic.
• ✅ Left confirms his VIX trade was profitable, despite not necessarily predicting market direction, as he anticipated a lower VIX in a new reality of market adjustments.

First Solar Investment

• 🚀 Left initiated a long position in First Solar following the Trump administration's announcement of significant tariffs on Chinese and Asian solar imports.
• ⚡ He believes First Solar, which manufactures in the U.S., will be a direct beneficiary, gaining better pricing power against Asian competitors.
• 📈 Although the stock has had a rough year, Left sees potential due to industry demand and analyst expectations, but advises investors to consider their own risk tolerance.

Amazon and China ETFs

• 💰 A second new long position is in Amazon, which Left likes at $172 due to its ability to navigate tariffs through dynamic pricing and its broad-based businesses.
• 📈 He sees Amazon as well-positioned among 'Mag Seven' stocks, offering value at a low P/E ratio.
• 🇨🇳 Surprisingly, Left is also long the FXI ETF, an exchange-traded fund with significant Chinese stocks, believing the market has been oversold and is due for a rebound.
• 💡 He points to the Chinese government's commitment to supporting its market and the potential catalyst of a U.S.-China trade deal as reasons for optimism.