Professor Mark J. Perry's Blog for Economics and Finance
The CBOE Volatility Index (VIX) closed yesterday (Thursday) below 27 for the first time since September 12 of last year, and reached a new 9-month low of 26.36. From the November highs that peaked at almost 81, the VIX has fallen by more than 67%.
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
6 Comments:
The VIX is a contrary indicator. Low volatility is evidence of investor complacency.
And thus did Dr. Doom lose his coin toss....
Ironman 2, Roubini 0
You are so full of it, it is beyond belief, Ironman.
If investors don't like surprises then then low volitility is great. The complacency is in the speculators camp is it not? I can see that both investors and speculators might like high volitility -- investors would have bargains and lots of action for the speculators to play with.
The cowardly "Anonymous" said:
You are so full of it, it is beyond belief, Ironman.
You'll note the timing of the post you linked, coming during a quarter of 2.8% GDP growth and ahead of the significant spike in oil prices during the summer of 2008.
That spike is specifically what it took to really push the U.S. into recession. Without it, the period from December 2007 to June 2008 is simply one that averaged low growth, which doesn't qualify as a recession. The last I checked, Roubini didn't anticipate the oil spike either, so at best, it's a draw....
Next time, please cite relevant facts that actually *support* your point of view....
Professor,
Thank you for not referring to the VIX as the "Fear Index" anymore.
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