Friday, June 26, 2009

The Volatility Index (VIX) Falls to a 9-Month Low

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%.

6 Comments:

At 6/26/2009 1:55 PM, Anonymous Anonymous said...

The VIX is a contrary indicator. Low volatility is evidence of investor complacency.

 
At 6/26/2009 4:03 PM, Blogger Ironman said...

And thus did Dr. Doom lose his coin toss....

Ironman 2, Roubini 0

 
At 6/26/2009 6:38 PM, Anonymous Anonymous said...

You are so full of it, it is beyond belief, Ironman.

 
At 6/26/2009 7:29 PM, Anonymous gettingrational said...

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.

 
At 6/27/2009 12:35 PM, Blogger Ironman said...

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....

 
At 6/29/2009 12:30 PM, Blogger Size said...

Professor,

Thank you for not referring to the VIX as the "Fear Index" anymore.

 

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