The question that I’m most often asked lately involves the rapid rise and fall of the Cboe Volatility Index (VIX) over the past two weeks. [...] My answers usually hinge upon the fact that VIX is not designed as a “fear gauge”, but instead measures the “30-day expected volatility of the U.S. stock market.” Considering the events that are due in the coming 30-day period – the “known unknowns”, so to speak – the low VIX tells us more about how sanguine investors are about them.
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